"Bankruptcy talk brought down Serbian currency"

BELGRADE Reports about Serbia's possible bankruptcy have affected the exchange rate of the dinar (RSD), and are the main reason behind Tuesday's low point. According to the Belgrade-based daily Blic, dinar's lowest value against the EU currency in 2013 - when the exchange rate stood at 113.0848 - means that the citizens who have taken out loans in euros would pay RSD 500 more with this month's installment. "Bankruptcy talk brought down Serbian currency" On Wednesday, the dinar lost 0.3 percent more against the euro, with the exchange rate today at 113,3692. In order to alleviate excessive daily oscillations of the rate, the central bank (NBS) on Tuesday sold EUR 10mn in the inter-bank market. Sources with the NBS admit that the speculation last week about the state of Serbia's public finances triggered the national currency's slide, along with uncertainties regarding the dynamic and depth of fiscal consolidation reforms that should follow. For this reason, the central bank is urging the government to adopt a set of measures to improve the situation, writes the newspaper. "The announced lowering of the country's rating and negative recommendations of some foreign investment firms related to investing in the Serbian dinar have made investors more cautious, and that triggered the trend of dinar's weakening last week," Blic said it was told at the National Bank of Serbia. Association of Exchange Offices of Serbia President Branislav Brujic was quoted as saying that it was "noticeable" that Serbians have been buying more hard currency in the past days. "There's no reason to panic, nothing of particular interest is happening in the market," Brujic advised. (sxc.hu, stock) Blic Tanjug

"Bankruptcy talk brought down Serbian currency"

On Wednesday, the dinar lost 0.3 percent more against the euro, with the exchange rate today at 113,3692.

In order to alleviate excessive daily oscillations of the rate, the central bank (NBS) on Tuesday sold EUR 10mn in the inter-bank market.

Sources with the NBS admit that the speculation last week about the state of Serbia's public finances triggered the national currency's slide, along with uncertainties regarding the dynamic and depth of fiscal consolidation reforms that should follow.

For this reason, the central bank is urging the government to adopt a set of measures to improve the situation, writes the newspaper.

"The announced lowering of the country's rating and negative recommendations of some foreign investment firms related to investing in the Serbian dinar have made investors more cautious, and that triggered the trend of dinar's weakening last week," Blic said it was told at the National Bank of Serbia.

Association of Exchange Offices of Serbia President Branislav Brujić was quoted as saying that it was "noticeable" that Serbians have been buying more hard currency in the past days.

"There's no reason to panic, nothing of particular interest is happening in the market," Brujić advised.