Serbia’s Foreign-Exchange Reserves Declined 0.2% in July

Serbia’s foreign-exchange reserves fell 0.2 percent in July as lenders withdrew more funds to boost their capital.

Reserves declined to 10.14 billion euros ($12.53 billion) in July from 10.16 billion euros in June and 12.1 billion euros at the end of 2011, the Belgrade-based Narodna Banka Srbije said in an e-mail today. Lenders withdrew 167.4 million euros from mandatory reserves, the central bank said.

Net reserves, excluding deposits by commercial lenders and money from the International Monetary Fund, rose to 5.53 billion euros from 5.42 billion euros in June, it said.

The government repaid 18.9 million euros to domestic creditors and 28.7 million euros to foreign lenders. Inflows included 32.6 million euros of credits and donations, as well as the government’s euro-denominated borrowing of 30.7 million euros on the local market.

The bank’s defense of the dinar, which lost 1.6 percent against the euro in July, cost 44.5 million euros, down from 107.6 million euros in June.

Total reserves equaled 435 percent of M1 money supply, down from 438 percent om the previous month. Interbank foreign- currency trading dropped to 1.49 billion euros from 1.82 billion euros in June, bringing the seven-month volume to 9.74 billion, the bank said.

To contact the reporters on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.