Serb June Foreign-Exchange Reserves Drop 2.6% on Dinar DefenseGordana Filipovic
Serbia’s foreign-currency reserves fell for a third month as the central bank propped up the dinar and the government repaid debt, the central bank said.
The reserves dropped to 10.67 billion euros ($13.9 billion) from 10.96 billion euros in May, Belgrade-based Narodna Banka Srbije said in an e-mailed statement today. Inflows included an increase in banks’ mandatory reserves by 242.4 million euros, the government borrowing of 63 million euros and 65 million euros from loans and grants.
The National Bank of Serbia sold 270 million euros in June to prop up the dinar, which depreciated a nominal 2.2 percent against the euro, while the government repaid 157.6 million euros of debt, including 46 million euros to the International Monetary Fund.
Net reserves, excluding the money commercial lenders keep with the central bank and funds from the IMF, dropped to 6.74 billion euros from 7.19 billion euros in May, the bank said.
Interbank foreign-currency trading rose 66 percent on the month to 1.14 billion euros, bringing the six-month total to 5.26 billion, it said.