NBS intervenes with EUR 30mn
The National Bank of Serbia (NBS) has intervened with EUR 30mn in a bid to boost liquidity.
Thursday, 21.02.2008.
14:41
The National Bank of Serbia (NBS) has intervened with EUR 30mn in a bid to boost liquidity. Governor Radovan Jelasic confirmed that the central bank spent this amount in the inter-banking market in the three working days of this week, in order to increase liquidity, "not to stabilize the exchange rate" . NBS intervenes with EUR 30mn Jelasic says that this decision came when the turnover was consistently only one tenth of the usual this week, reflecting the reluctance of the market, created by the current political situation in the country. "The NBS could, if it so wished, with its high hard currency reserves of USD 14.5bn at hand, intervene in this way indefinitely. However, it is not the job of a central bank to be an active player in the market, but to be the referee that only intervenes under some circumstances," Jelasic explained. The governor also believes the turnover in the inter-banking market will soon return to its normal levels.
NBS intervenes with EUR 30mn
Jelašić says that this decision came when the turnover was consistently only one tenth of the usual this week, reflecting the reluctance of the market, created by the current political situation in the country."The NBS could, if it so wished, with its high hard currency reserves of USD 14.5bn at hand, intervene in this way indefinitely. However, it is not the job of a central bank to be an active player in the market, but to be the referee that only intervenes under some circumstances," Jelašić explained.
The governor also believes the turnover in the inter-banking market will soon return to its normal levels.
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