Exchange rate hovers near RSD 90 mark

The official exchange rate today is RSD 89.51 for one euro – yet another record low for the domestic currency in the past couple of months.

Source: B92

Monday, 01.12.2008.

09:32

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The official exchange rate today is RSD 89.51 for one euro – yet another record low for the domestic currency in the past couple of months. The dinar's seemingly endless slide is taking place despite the National Bank of Serbia (NBS) efforts to stop it via interventions in the inter-banking currency market. Exchange rate hovers near RSD 90 mark Institute of Market Research's Sasa Djogovic says that the trend will continue, given that capital is being withdrawn from Serbia, and that the exchange rate was until recently "on glass legs, with virtual stability, exposed by the world financial crisis". "I expect the exchange rate to be higher than RSD 90, but I don't now the level it will stop at. It's possible that some oscillations will happen depending on the volume of the NBS interventions, but also the seasonal Christmas factor, when the dinar could strengthen somewhat," Djogovic told B92. The central bank spent around half a billion euros in the past several months, selling the hard currency, but the exchange rate still slipped almost RSD 13 in the same period. Djogovic believes that the NBS is now acting to prevent huge daily fluctuations of the exchange rate, rather than to defend the home currency. This expert believes that the situation is the result of a poorly managed economic policy, not only monetary but also that handled by the government, where "big appetites of political parties" led to more spending than the country could sustain. "The economy was not on the agenda, nor was there any strategy, and I don't see one today, when it comes to the growth and development of our economy," Djogovic says.

Exchange rate hovers near RSD 90 mark

Institute of Market Research's Saša Đogović says that the trend will continue, given that capital is being withdrawn from Serbia, and that the exchange rate was until recently "on glass legs, with virtual stability, exposed by the world financial crisis".

"I expect the exchange rate to be higher than RSD 90, but I don't now the level it will stop at. It's possible that some oscillations will happen depending on the volume of the NBS interventions, but also the seasonal Christmas factor, when the dinar could strengthen somewhat," Đogović told B92.

The central bank spent around half a billion euros in the past several months, selling the hard currency, but the exchange rate still slipped almost RSD 13 in the same period.

Đogović believes that the NBS is now acting to prevent huge daily fluctuations of the exchange rate, rather than to defend the home currency.

This expert believes that the situation is the result of a poorly managed economic policy, not only monetary but also that handled by the government, where "big appetites of political parties" led to more spending than the country could sustain.

"The economy was not on the agenda, nor was there any strategy, and I don't see one today, when it comes to the growth and development of our economy," Đogović says.

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