“NBS to defend dinar at 103 mark”

Bankers are expecting the Serbian dinar (RSD) exchange rate against the euro to stabilize, Belgrade daily Blic writes.

Izvor: Blic

Thursday, 27.05.2010.

13:35

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Bankers are expecting the Serbian dinar (RSD) exchange rate against the euro to stabilize, Belgrade daily Blic writes. At the same time, they are warning that the weakening of the domestic currency is “in nobody’s interest”. “NBS to defend dinar at 103 mark” According to the newspaper, bankers expect that the National Bank of Serbia (NBS) will not allow the value of the dinar to to slip under RSD 103 for one euro. “I don’t think that the dinar is going downhill. Balance will be established at some point, but it can hardly be predicted at what level,” Hypo-Alpe Adria Bank in Serbia Executive Board Director Vladimir Cupic told the daily. Noting that it was difficult to make predictions about the exchange rate fluctuation, Banca Intesa representatives said they expected that the exchange rate would soon stabilize with a more active role of the NBS. The central bank sold EUR 976.5mn since the beginning of the year in bids to stabilize the hard currency market. If there had not been for these interventions the dinar exchange rate would have certainly been much higher. Cupic thinks that the central bank should prevent large daily fluctuations of the exchange rate while the rest should come a result of the market’s actions and condition of the Serbian economy. Erste Bank in Serbia Executive Board President Slavko Caric is of a similar opinion. “The NBS can keep the exchange rate under control and I think that it has decided to keep it below RSD 103,” he pointed out. There are several reasons for the drop of the domestic currency’s value in the last 10 days, the daily quotes its interlocutors, and lists the reasons as “fluctuations of the market, psychological factor”. The reality is, concludes the newspaper, that companies are buying foreign currency for various purposes and that “everybody seeks security from foreign currency risks, both those buying and selling”.

“NBS to defend dinar at 103 mark”

According to the newspaper, bankers expect that the National Bank of Serbia (NBS) will not allow the value of the dinar to to slip under RSD 103 for one euro.

“I don’t think that the dinar is going downhill. Balance will be established at some point, but it can hardly be predicted at what level,” Hypo-Alpe Adria Bank in Serbia Executive Board Director Vladimir Čupić told the daily.

Noting that it was difficult to make predictions about the exchange rate fluctuation, Banca Intesa representatives said they expected that the exchange rate would soon stabilize with a more active role of the NBS.

The central bank sold EUR 976.5mn since the beginning of the year in bids to stabilize the hard currency market. If there had not been for these interventions the dinar exchange rate would have certainly been much higher.

Čupić thinks that the central bank should prevent large daily fluctuations of the exchange rate while the rest should come a result of the market’s actions and condition of the Serbian economy.

Erste Bank in Serbia Executive Board President Slavko Carić is of a similar opinion. “The NBS can keep the exchange rate under control and I think that it has decided to keep it below RSD 103,” he pointed out.

There are several reasons for the drop of the domestic currency’s value in the last 10 days, the daily quotes its interlocutors, and lists the reasons as “fluctuations of the market, psychological factor”.

The reality is, concludes the newspaper, that companies are buying foreign currency for various purposes and that “everybody seeks security from foreign currency risks, both those buying and selling”.

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