Serbian currency stronger, prices unchanged

NBS 'plans to buy EUR 40mn in the next 20 days'.

Anybody else find this hillarious? I mean what on earth is the point of telling (potential) speculators this. Anybody with a most basic understanding of economics will know that this will encourage people to continue to change their euros into dinars.

Unless of course this is the plan of NBS and / or the government.

Mark my words this is a foolproof way for somebody with a considerable amount of money to make considerably more money.

On a related note my 3 month dinars savings account at 12.5% expires in 10 days or so. I made 15,000 dinars in interest over the period, but in real terms have made even more due to the stronger dinar. With the government's current policy though I'll just put the money in for another 3 months, perhaps put it in again for a final 3 months and they hey presto change it into euros before the election. Damned if I don't make at least 100,000 dinars profit once the dinar crashes post election.

Now imagine very rich people doing the same, multiply by 100 or so...

NBS 'plans to buy EUR 40mn in the next 20 days'.

Anybody else find this hillarious? I mean what on earth is the point of telling (potential) speculators this. Anybody with a most basic understanding of economics will know that this will encourage people to continue to change their euros into dinars.

Unless of course this is the plan of NBS and / or the government.

Mark my words this is a foolproof way for somebody with a considerable amount of money to make considerably more money.

On a related note my 3 month dinars savings account at 12.5% expires in 10 days or so. I made 15,000 dinars in interest over the period, but in real terms have made even more due to the stronger dinar. With the government's current policy though I'll just put the money in for another 3 months, perhaps put it in again for a final 3 months and they hey presto change it into euros before the election. Damned if I don't make at least 100,000 dinars profit once the dinar crashes post election.

Now imagine very rich people doing the same, multiply by 100 or so...