Domestic currency’s value to drop again on Monday
The domestic currency will continue its slide on Monday, and it is expected that one euro will be worth RSD 103.87 at the beginning of next week.
Sunday, 20.06.2010.
14:10
The domestic currency will continue its slide on Monday, and it is expected that one euro will be worth RSD 103.87 at the beginning of next week. The National Bank of Serbia (NBS) intervened on Saturday on the foreign market, and has sold over EUR 1.2bn since the beginning of the year. Domestic currency’s value to drop again on Monday In order to stop the dinar from sliding further, businesspeople have proposed that the exchange rate should be tied to inflation trends. The Prime Minister’s economic adviser Milojko Arsic said that this idea is problematic. “According to that proposal, the exchange rate would move according to the inflation, which means that the so-called realistic rate would be unchanged. The basic problem with such a policy is that a balanced and sustainable exchange rate does not only depend on inflation, but also on a large number of other factors,” Arsic said.
Domestic currency’s value to drop again on Monday
In order to stop the dinar from sliding further, businesspeople have proposed that the exchange rate should be tied to inflation trends.The Prime Minister’s economic adviser Milojko Arsić said that this idea is problematic.
“According to that proposal, the exchange rate would move according to the inflation, which means that the so-called realistic rate would be unchanged. The basic problem with such a policy is that a balanced and sustainable exchange rate does not only depend on inflation, but also on a large number of other factors,” Arsić said.
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