Exchange rate will depend on state-NBS relations

The exchange rate will depend on relations between the government and National Bank of Serbia, Serbian Bank Association Secretary General Veroljub Dugalic said. Dugalic said that poor communication between the two institutions in the recent period had a lot to do with the recent decrease in the value of the domestic currency. Exchange rate will depend on state-NBS relations The rate will fall under RSD 97 for one euro on Monday, according to estimates. The strengthening of the domestic currency is a result of a new intervention of the NBS on the interbank foreign currency market. The decrease in the value of the dinar affects citizens and businesspeople who are in debt most, and according to data from the Bank Association, companies had an increase in their debts of 6.8 percent and citizens three percent in December. According to statistics from the credit bureau, the debt of an average Serbian citizen is about EUR 650. However, Dugalic said that late credit payments have also increased by 0.1 percent on a monthly basis. “The tardiness of citizens increased by 0.1 percent. If we were to look at this on a yearly level, tardiness was four percent at the end of last year, and citizens payed their debts with an increase in tardiness of 1.5 percent last year, which has now increased to 3.2 percent. It has more than doubled and that is a negative indicator which speaks of the increase in the lack of timely payments,” Dugalic said. According to statistics of the Association, the interest of citizens in cash credit decreased in 2008, but many used credit for refinancing. (Beta archive)

Exchange rate will depend on state-NBS relations

The rate will fall under RSD 97 for one euro on Monday, according to estimates.

The strengthening of the domestic currency is a result of a new intervention of the NBS on the interbank foreign currency market.

The decrease in the value of the dinar affects citizens and businesspeople who are in debt most, and according to data from the Bank Association, companies had an increase in their debts of 6.8 percent and citizens three percent in December.

According to statistics from the credit bureau, the debt of an average Serbian citizen is about EUR 650.

However, Dugalić said that late credit payments have also increased by 0.1 percent on a monthly basis.

“The tardiness of citizens increased by 0.1 percent. If we were to look at this on a yearly level, tardiness was four percent at the end of last year, and citizens payed their debts with an increase in tardiness of 1.5 percent last year, which has now increased to 3.2 percent. It has more than doubled and that is a negative indicator which speaks of the increase in the lack of timely payments,” Dugalić said.

According to statistics of the Association, the interest of citizens in cash credit decreased in 2008, but many used credit for refinancing.