Serbia’s central bank sold 80 million euros ($107 million) on the market today to reverse declines in the dinar after the currency dropped to an all-time low of 112 to the euro.
The Belgrade-based Narodna Banka Srbije said in a statement on its website that it “acted to smooth excessive daily swings” triggered by concerns that the government’s spending policies are not in line with pledges initially made to the International Monetary Fund under a $1.3 billion precautionary loan program.
The dinar closed at 110.0108 at 4:30 p.m. in Belgrade at the end of the trading session, according to data compiled by Bloomberg. The central bank set the official exchange rate for Feb. 28 at 110.3562 to the euro.
With today’s intervention, the National Bank of Serbia sold a total of 188.5 million euros since the start of February to curb dinar declines. It acted a day before the government is due to sell 20 billion dinars in three-year Treasury bonds, with a 10 percent coupon.