Jelašić: Exchange rate in 2010 stable

The exchange rate of the Serbian dinar (RSD) in 2010 will be stable, and the domestic currency will strengthen, NBS Governor Radovan Jelašić says.

Izvor: Tanjug

Monday, 04.01.2010.

09:19

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The exchange rate of the Serbian dinar (RSD) in 2010 will be stable, and the domestic currency will strengthen, NBS Governor Radovan Jelasic says. But the central bank chief noted that this will be possible "only if agreements are respected". Jelasic: Exchange rate in 2010 stable Jelasic said that this included current agreements on freezing spending, achieving planned investments in infrastructure and increasing exports. If the commitments that have been made are observed, perhaps 2010 will end with the strengthening of the dinar, he told RTS state broadcaster. "The most difficult thing in 2009, as in previous years, was that when something happens to the exchange rate, all point the finger solely at the National Bank," he said. "Obviously people do not understand or do not want to understand that the exchange rate depends on macroeconomic developments," Jelasic continued. Inflation this year will be four to six percent, and the standard of living even better, "if the prices rise less" he was further quoted as saying. "Besides frozen wages and pensions, if inflation at the end of the year is below six, maybe five or less percent, the deterioration will be milder," he said.

Jelašić: Exchange rate in 2010 stable

Jelašić said that this included current agreements on freezing spending, achieving planned investments in infrastructure and increasing exports.

If the commitments that have been made are observed, perhaps 2010 will end with the strengthening of the dinar, he told RTS state broadcaster.

"The most difficult thing in 2009, as in previous years, was that when something happens to the exchange rate, all point the finger solely at the National Bank," he said.

"Obviously people do not understand or do not want to understand that the exchange rate depends on macroeconomic developments," Jelašić continued.

Inflation this year will be four to six percent, and the standard of living even better, "if the prices rise less" he was further quoted as saying.

"Besides frozen wages and pensions, if inflation at the end of the year is below six, maybe five or less percent, the deterioration will be milder," he said.

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