Serbian Central Bank Sells Euros to Support Weak Dinar
The Serbian central bank sold euros for the fourth consecutive day to support the weakening dinar to stem its declines ahead of May 6 elections.
The Belgrade-based Narodna Banka Srbije sold 40 million euros ($52.9 million) today to “ensure smooth functioning” of the market, it said in a statement on its website.
The bank started selling euros this morning after the dinar weakened through 112 to the euro, said three traders with knowledge of the action, asking for anonymity because of banking policies.
The central bank has spent a total of 678.5 million euros since the start of 2012 to prop up the dinar, which has fallen 10.15 percent against the euro compared with the same period last year, according to data compiled by Bloomberg.
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