Serbia’s Reserves Fell in September to Lowest in 22 Months

Serbia’s foreign-exchange reserves slipped to their lowest level since November 2010 as debt servicing took more than all inflows combined.

Reserves dropped to 9.83 billion euros ($12.7 billion) at the end of September from 9.9 billion euros in August, as the Balkan nation repaid 113.8 million euros to foreign creditors, the Belgrade-based Narodna Banka Srbije said in an e-mail today.

Inflows included 46.6 million euros in new mandatory reserves set aside by commercial lenders, 39.7 million euros from euro-denominated bonds sold on the local market as well as 18.2 million euros from donations and loans, the central bank said.

Net reserves, excluding deposits by banks and the money from the International Monetary Fund, fell to 5.48 billion euros from 5.54 billion euros a month earlier.

Total reserves equalled 389 percent of M1 money supply, down from 419 percent in August. Interbank foreign-currency trading fell more than 26 percent to 1.22 billion euros from 1.6 billion euros, bringing the nine-month volume to 12.6 billion euros, the bank said.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

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

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