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Serb Dinar Erases Earlier Losses as Central Bank Said to Act

The dinar erased earlier losses as the central bank started selling euros after the Serbian currency fell past 111 to the euro, three currency traders said.

The central bank started today’s market action after the dinar dropped 0.5 percent to 111.3839 at 2:16 p.m. in Belgrade, said the traders who didn’t want to be identified, in line with bank policy.

The dinar was trading between 110.60 and 110.80 to the euro after several rounds of selling, they said.

The National Bank of Serbia sold 188.5 million euros ($250.9 million) to banks in February to slow declines in the dinar, triggered by concerns 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.

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