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Serb Central Bank Sells Euros, Caps Dinar Drop Before Elections

The Serbian central bank sold euros to banks for a sixth consecutive trading session today, limiting the declines in the dinar exchange rate ahead of May 6 elections.

The Belgrade-based Narodna Banka Srbije sold 10 million euros ($13.2 million) to “ensure the smooth functioning” of the market, it said in a statement on its website. The dinar was trading at 112.0537 to the euro at 4:00 p.m. in Belgrade, its lowest in a decade, according to data compiled by Bloomberg.

The central bank has spent 708.5 million euros since the start of 2012 to prop up the dinar, which has fallen 10 percent against the euro compared with the same period last year.

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