Serb Central Bank Buys 10 Million Euros to Temper Dinar Gains

Serbia’s central bank today bought euros for the sixth time this year to slow gains in the dinar as the currency traded at its strongest levels in 13 months.

The Belgrade-based Narodna Banka Srbije purchased 10 million euros ($13.1 million) from commercial banks to “ease the excessive daily volatility” of the currency, it said on its website. The bank bought 50 million euros on April 29.

Three currency traders in Belgrade, who asked to remain unidentified in line with the policies of their banks, said the central bank was buying euros at levels of about 110.40 and 110.60 dinars to the euro, after the Serbian currency gained 0.3 percent on the day.

The dinar traded at 110.66 at 6:01 p.m. in Belgrade. It has gained 2.45 percent against the euro in the past six months.

With today’s intervention, the National Bank of Serbia purchased a total of 90 million euros to slow the gains in the dinar. The currency’s strengthening was triggered by the European Commission’s decision to recommend that European Union member states begin membership talks with Serbia.

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