NBS in bid to stabilize foreign currency market

The National Bank of Serbia (NBS) is to force banks to transfer 10 percent of their foreign currency reserves into dinars. The goals of these monetary policies, according to the NBS, are to alter banks’ balance structure, the effects of which are forecast to be about EUR 338mn, increase the attractiveness of savings in dinars, increase the amount of foreign currency on the market, and stabilize the market. NBS in bid to stabilize foreign currency market The deadline for the mandatory reserves will be moved from the 18th of the current month to the 17th of next month, and interest will be calculated and paid out in the currency of the original reserves. An expert from the Chamber of Commerce, Goran Nikolic, said that the goal of such measures was to increase liquidity on the foreign currency market and “support the dinar.” He said that under these measures, banks would be forced to sell EUR 250mn and buy RSD 28bn in order to increase supply on the foreign currency market. Nikolic added that it was a “subtle and good measure,” that should “psychologically support the dinar.”

NBS in bid to stabilize foreign currency market

The deadline for the mandatory reserves will be moved from the 18th of the current month to the 17th of next month, and interest will be calculated and paid out in the currency of the original reserves.

An expert from the Chamber of Commerce, Goran Nikolić, said that the goal of such measures was to increase liquidity on the foreign currency market and “support the dinar.”

He said that under these measures, banks would be forced to sell EUR 250mn and buy RSD 28bn in order to increase supply on the foreign currency market.

Nikolić added that it was a “subtle and good measure,” that should “psychologically support the dinar.”