NBS FX reserves total EUR 10.44 billion at end-April

NBS FX reserves total EUR 10.44 billion at end-April

BELGRADE -- Serbia’s total foreign exchange (FX) reserves amounted to EUR 10.44 billion while net reserves stood at 7.34 billion at the end of April.

This was announced by the National Bank of Serbia (NBS).

The FX reserves cover M1 money supply by 331 percent or more than seven months of imports of goods and services.

Major inflows to FX reserves in April came from the sale of euro-denominated government securities in the domestic financial market (EUR 123.6 million) and the disbursement of loans and grants (EUR 32.4 million).

Outflows from FX reserves were caused by withdrawal of higher-than-prescribed required reserve allocations (EUR 154 million, net), settlement of liabilities to foreign creditors (EUR 49.6 million) and repayment of debt to the International Monetary Fund (IMF) (EUR 22.4 million), the NBS said.

Net FX reserves, defined as FX reserves less banks’ required reserves and drawings from the IMF, came at EUR 7.34 billion.

Trading volume in the Interbank Foreign Exchange Market (IFEM) reached EUR 368.5 million, down by EUR 75.4 million from the month before. In the first four months of the year, IFEM trading volume totaled EUR 1.79 billion.

The dinar (RSD) depreciated against the euro(EUR) by 0.3 percent in nominal terms in April, while the NBS intervened in the IFEM by buying EUR 110 million to ease excessive short-term volatility of the national currency, the NBS release said.