NBS Governor: Fluctuating rate better than fixed one

. . . and this is the blather we get from National Bank of Serbia (NBS) Governor Dejan Šoškić, that heck, "there are other currencies in the area worse than ours". You smug butt head, Serbian citizens are seeing their loan payments rise every month, and the things they purchased are now more costly. Unfortunately, the salaries and pensions in Serbia are not rising against the fall of the dinar, and it is of little consolation that the Turkish Lira has depreciated more than Serbia's dinar. BTW, please do not try and insinuate that the Serbian economy is better than that of Turkey, you are already a laughing stock, that statement would be criminal.

Dejan sure looks unhappy in the photo, and with good reason.

"Commenting the assessments of home experts that the dinar plummeted since the beginning of the year, he recalled that two years ago the exchange rate stood at RSD 107 for one euro, which was the same as ten days ago."

All of the above mentioned currencies have dropped, but from what level?
That is the question Dejan should be asking! Unless structural problems in the currency are addressed, the dinar will continue to plummet.

I side with those who claim that the rate should be 130 to 150. Serbia is importing more than it exports and that situation is not sustainable.

A lower exchange rate will be painful for those who have borrowed in euro's but it would be a major mistake to keep the whole country hostage to those people.

The governor mentions that prices will increase when the dinar devalues. So what? Stopping to live above your means is always painful. But the longer you delay it the more painful the final adjustment will become. Ask the Greek about that!

. . . and this is the blather we get from National Bank of Serbia (NBS) Governor Dejan Šoškić, that heck, "there are other currencies in the area worse than ours". You smug butt head, Serbian citizens are seeing their loan payments rise every month, and the things they purchased are now more costly. Unfortunately, the salaries and pensions in Serbia are not rising against the fall of the dinar, and it is of little consolation that the Turkish Lira has depreciated more than Serbia's dinar. BTW, please do not try and insinuate that the Serbian economy is better than that of Turkey, you are already a laughing stock, that statement would be criminal.
(winston, 2 March 2012 13:04)

Winston,

Welcome to the EU waiting list, hee, hee!

. . . and this is the blather we get from National Bank of Serbia (NBS) Governor Dejan Šoškić, that heck, "there are other currencies in the area worse than ours". You smug butt head, Serbian citizens are seeing their loan payments rise every month, and the things they purchased are now more costly. Unfortunately, the salaries and pensions in Serbia are not rising against the fall of the dinar, and it is of little consolation that the Turkish Lira has depreciated more than Serbia's dinar. BTW, please do not try and insinuate that the Serbian economy is better than that of Turkey, you are already a laughing stock, that statement would be criminal.

. . . and this is the blather we get from National Bank of Serbia (NBS) Governor Dejan Šoškić, that heck, "there are other currencies in the area worse than ours". You smug butt head, Serbian citizens are seeing their loan payments rise every month, and the things they purchased are now more costly. Unfortunately, the salaries and pensions in Serbia are not rising against the fall of the dinar, and it is of little consolation that the Turkish Lira has depreciated more than Serbia's dinar. BTW, please do not try and insinuate that the Serbian economy is better than that of Turkey, you are already a laughing stock, that statement would be criminal.
(winston, 2 March 2012 13:04)

Winston,

Welcome to the EU waiting list, hee, hee!

Dejan sure looks unhappy in the photo, and with good reason.

"Commenting the assessments of home experts that the dinar plummeted since the beginning of the year, he recalled that two years ago the exchange rate stood at RSD 107 for one euro, which was the same as ten days ago."

All of the above mentioned currencies have dropped, but from what level?
That is the question Dejan should be asking! Unless structural problems in the currency are addressed, the dinar will continue to plummet.

I side with those who claim that the rate should be 130 to 150. Serbia is importing more than it exports and that situation is not sustainable.

A lower exchange rate will be painful for those who have borrowed in euro's but it would be a major mistake to keep the whole country hostage to those people.

The governor mentions that prices will increase when the dinar devalues. So what? Stopping to live above your means is always painful. But the longer you delay it the more painful the final adjustment will become. Ask the Greek about that!