Currency "stronger due to investors' interest"

BELGRADE The strengthening of the Serbian dinar (RSD) against the euro (EUR) is a consequence of increased interest of foreign investors, says Jorgovanka Tabakovic. The governor of the National Bank of Serbia (NBS) specified that there was more interest in "dinar-denominated securities, as of October". Currency "stronger due to investors' interest" Another factor in this development was the decision of the European Central Bank to reduce the principal interest rate to the record low 0.25 percent, which increased the attractiveness for foreign investors to invest in markets in developing countries with higher return rate, Tabakovic said. On the other hand, other factors which contributed to this were the improved macroeconomic developments in Serbia, primarily the reduction of the inflation rate and adoption of the government fiscal consolidation measures, Tabakovic said. In a written statement, the NBS governor underscored that the central bank purchased EUR 265 million since October to stabilise the foreign exchange market. NBS purchased EUR 100 million on the foreign exchange market on Thursday to ease excessive daily oscillation of the exchange market, which is the biggest daily intervention in terms of foreign currency purchase so far. Since the beginning of the year, NBS sold EUR 425 million on the inter-bank foreign exchange market and it purchased EUR 355 million. (Tanjug, file) Tanjug

Currency "stronger due to investors' interest"

Another factor in this development was the decision of the European Central Bank to reduce the principal interest rate to the record low 0.25 percent, which increased the attractiveness for foreign investors to invest in markets in developing countries with higher return rate, Tabaković said.

On the other hand, other factors which contributed to this were the improved macroeconomic developments in Serbia, primarily the reduction of the inflation rate and adoption of the government fiscal consolidation measures, Tabaković said.

In a written statement, the NBS governor underscored that the central bank purchased EUR 265 million since October to stabilise the foreign exchange market.

NBS purchased EUR 100 million on the foreign exchange market on Thursday to ease excessive daily oscillation of the exchange market, which is the biggest daily intervention in terms of foreign currency purchase so far.

Since the beginning of the year, NBS sold EUR 425 million on the inter-bank foreign exchange market and it purchased EUR 355 million.