“Inflation around 5 pct at end of year”
Outgoing National Bank of Serbia (NBS) Governor Radovan Jelašić stated on Tuesday that the inflation is expected to be less than four percent in May and June.
Tuesday, 08.06.2010.
16:10
Outgoing National Bank of Serbia (NBS) Governor Radovan Jelasic stated on Tuesday that the inflation is expected to be less than four percent in May and June. The figure, according to him, will be about five percent at the end of the year. “Inflation around 5 pct at end of year” Jelasic added, according to reports, that prices do not depend only on the dinar exchange rate. The central bank chief who resigned and is awaiting replacement told journalists that, apart from the exchange rate, prices depend on many other internal and external factors, adding that it is impossible to precisely determine the dinar exchange rate which may jeopardize the price stability, as "monetary economy is neither physics nor chemistry". He stressed that Serbia's foreign reserves are high enough for an efficient "defense of the dinar" and added that a certain amount of foreign currency was sold on Monday only for dinars, so that there would be no large daily exchange rate fluctuations. Jelasic recommended that the future NBS governor should, in general, pursue the same policy that he pursued in the last "three plus six years", but added that "it will be up to him to decide on which course to follow". The new bill on the NBS has been brought before parliament. The debate on the bill is to begin this week, so the new governor is most likely to be elected at the end of June or beginning of July.
“Inflation around 5 pct at end of year”
Jelašić added, according to reports, that prices do not depend only on the dinar exchange rate.The central bank chief who resigned and is awaiting replacement told journalists that, apart from the exchange rate, prices depend on many other internal and external factors, adding that it is impossible to precisely determine the dinar exchange rate which may jeopardize the price stability, as "monetary economy is neither physics nor chemistry".
He stressed that Serbia's foreign reserves are high enough for an efficient "defense of the dinar" and added that a certain amount of foreign currency was sold on Monday only for dinars, so that there would be no large daily exchange rate fluctuations.
Jelašić recommended that the future NBS governor should, in general, pursue the same policy that he pursued in the last "three plus six years", but added that "it will be up to him to decide on which course to follow".
The new bill on the NBS has been brought before parliament. The debate on the bill is to begin this week, so the new governor is most likely to be elected at the end of June or beginning of July.
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