"Exchange rate not matter of agreement"

National Bank of Serbia Governor Radovan Jelasic said that he does not see a reason for calling a meeting to discuss the exchange rate of the dinar. He said that the exchange rate cannot be formed by an agreement. "Exchange rate not matter of agreement" “I do not know what new things we would hear in such a meeting, except for someone teaching us what the exchange rate means for companies and their balances,” Jelasic told journalists after speaking before the American Chamber of Commerce in Belgrade. The Serbian Chamber of Commerce (PKS) last week urged the central bank and the Ministry of Economy to act and prevent any further loss of value of the domestic currency (RSD). On Monday, Jelasic said that the exchange rate is formed freely on the inter-bank foreign currency market based on supply and demand, and that the central ban can only take responsibility to make sure that there are no huge daily fluctuations. Jelasic said that the decrease in the dinar’s value on December 4 was not the biggest one this year, adding that it was the ninth most severe drop in 2009 so far. "The exchange rate is the reflection of the economy in a certain country, so you cannot have a stable rate without a stable economy," said he. Jelasic also stated that a fixed exchange rate is not a good idea, adding that it is not possible to have "just a fixed exchange rate but leaving everything else, such as pensions and wages, as they are currently".

"Exchange rate not matter of agreement"

“I do not know what new things we would hear in such a meeting, except for someone teaching us what the exchange rate means for companies and their balances,” Jelašić told journalists after speaking before the American Chamber of Commerce in Belgrade.

The Serbian Chamber of Commerce (PKS) last week urged the central bank and the Ministry of Economy to act and prevent any further loss of value of the domestic currency (RSD).

On Monday, Jelašić said that the exchange rate is formed freely on the inter-bank foreign currency market based on supply and demand, and that the central ban can only take responsibility to make sure that there are no huge daily fluctuations.

Jelašić said that the decrease in the dinar’s value on December 4 was not the biggest one this year, adding that it was the ninth most severe drop in 2009 so far.

"The exchange rate is the reflection of the economy in a certain country, so you cannot have a stable rate without a stable economy," said he.

Jelašić also stated that a fixed exchange rate is not a good idea, adding that it is not possible to have "just a fixed exchange rate but leaving everything else, such as pensions and wages, as they are currently".