"Currency's decline has nothing to do with elections"

BELGRADE -- Jorgovanka Tabaković has dismissed as "nonsensical" speculation that the decline of the Serbian dinar "has anything to do with the talk of early elections."

"Early parliamentary elections would have no effect on monetary policy, nor would they halt the reforms that have been launched," the National Bank of Serbia (NBS) governor and SNS party official told the Blic daily.

She added that the January decline of the dinar is a result of traditionally higher demand for foreign exchange among Serbian companies, noting that "the U.S. Federal Reserve decision to reduce quantitative easing from this month has also had an impact on the exchange rate."

"Foreign exchange markets in the region reacted similarly," added Tabaković in the explanation why the dinar dropped almost one percent against the euro in three weeks.

The official median exchange rate against the euro (EUR) on Wednesday was RSD 115.6963.

The NBS has said it sold EUR 20 million on the interbank foreign exchange market to prevent excessive daily fluctuations of the exchange rate.

The Serbian currency lost 0.7 percent of its value against the euro compared to last month, and 3.4 percent compared to the same day last year.