NBS changes exchange rate settings

Exchange rate will be formed with reference to supply and demand in the entire foreign exchange market as of today.

Izvor: B92

Monday, 05.03.2007.

13:35

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NBS changes exchange rate settings

The exchange rate will thus be set not only with reference to trade in the Interbank Foreign Exchange Market (IFEM) session as has so far been the case, but also with reference to direct foreign exchange interbank trade outside the session which, in terms of volume, has been exceeding by far the volume of trade in the fixing session for quite some time now.

Total trade in the IFEM session in the year has been valued at 439.9 million euros to date, with the direct interbank trade outside the session being 3.5 times higher, totaling 1.534 million euros.

The National Bank of Serbia also announced that it would buy and sell only three foreign currencies: euro, US dollar and Swiss franc as of March 5. These three currencies already account for around 96 percent of total trade, and, even with this reduction, the NBS will still be trading in more currencies than any other central bank in the region and beyond, NBS claims in a statement.

The NBS underscored that the changes would not affect the stability of the country’s cash market, as banks and licensed exchange dealers will still be allowed to buy and sell all 17 currencies prescribed in the above decision as well as to buy 11 former currencies of EMU (The European Monetary Union) member countries.

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