"Stable trends in foreign exchange market"

National Bank of Serbia (NBS) Bojan Marković says the latest political events in the country have not influenced the foreign exchange market.

Izvor: Tanjug

Wednesday, 16.02.2011.

16:31

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National Bank of Serbia (NBS) Bojan Markovic says the latest political events in the country have not influenced the foreign exchange market. He told reporters in Belgrade on Wednesday that the central bank is monitoring the situation and will do everything to maintain stability. "Stable trends in foreign exchange market" At the presentation of the latest inflation report, Markovic pointed out that political problems drive up risk premiums, while increased stability always lowers them. The vice governor reminded that the dinar has been gaining against the euro since December, party explained by the fact that the country's risk premium has been going down since November, which makes for cheaper borrowing in the international market. The second reason the dinar has been gaining ground is that foreign investors have been selling more foreign currency to banks since the end of last year, Markovic noted and added that in December, January and the first 11 days of February, foreign investors sold EUR 538mn to banks, compared to only EUR 455.8mn in the first 11 months of 2010. Markovic at the news conference today (Beta)

"Stable trends in foreign exchange market"

At the presentation of the latest inflation report, Marković pointed out that political problems drive up risk premiums, while increased stability always lowers them.

The vice governor reminded that the dinar has been gaining against the euro since December, party explained by the fact that the country's risk premium has been going down since November, which makes for cheaper borrowing in the international market.

The second reason the dinar has been gaining ground is that foreign investors have been selling more foreign currency to banks since the end of last year, Marković noted and added that in December, January and the first 11 days of February, foreign investors sold EUR 538mn to banks, compared to only EUR 455.8mn in the first 11 months of 2010.

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