Finance Ministry, IMF planning new arrangement

It is questionable whether this is a good development. Given the trade balance and balance of payment Serbia has a totally unsustainable exchange rate. Capital flight - happening in all developping economies nowadays - is bound to put additional pressure. So the sound thing to do would be to abruptly change to a lower exchange rate. Instead Serbia's government is putting lots of money to support an unsustainable rate and the IMF support will only enable it to aste more money on this. The only people who will profit from this are those withdraw their money from Serbia before the inevitable happens.

It is questionable whether this is a good development. Given the trade balance and balance of payment Serbia has a totally unsustainable exchange rate. Capital flight - happening in all developping economies nowadays - is bound to put additional pressure. So the sound thing to do would be to abruptly change to a lower exchange rate. Instead Serbia's government is putting lots of money to support an unsustainable rate and the IMF support will only enable it to aste more money on this. The only people who will profit from this are those withdraw their money from Serbia before the inevitable happens.