"Net FX reserves at highest month-end level since 2000"

The central bank announced this on Tuesday.

"This level of FX reserves covered 190 percent of money supply (M1) or around six months'' worth of the country's imports of goods and services (almost twice the level prescribed by the standard on the adequate level of coverage of the imports of goods and services by FX reserves)," a press release said, adding:

"Net FX reserves (FX reserves less banks' FX balances on account of required reserves and other requirements) rose by EUR 98 million from end-October to EUR 9,721 million, i.e. their highest month-end level since 2000."

The increase in gross FX reserves continued into November, even though the government, as a result of good fiscal results in 2018, reduced its FX liabilities (EUR 108.8 million net) on account of loans and securities. This led to a further reduction in public debt and improvement of its currency structure, the NBS said, and added:

"A rise in gross FX reserves in November was due mainly to FDI inflows, i.e. the privatization of Poljoprivredna Korporacija Beograd AD (PKB) worth EUR 121.2 million and grants worth EUR 56.7 million. A further boost to FX reserves came from net inflows from NBS purchase interventions in the interbank FX market (EUR 15 million) and FX reserves management and other grounds (EUR 42.5 million). These inflows comfortably covered outflows in respect of government debt repayment (EUR 108.8 million), banks' customary activities concerning FX required reserves and other (EUR 32.8 million net), and a negative impact of market factors (EUR 17.6 million net), mainly due to a change in currency relationships in the international financial market."

Trading volumes in the IFEM amounted to EUR 543.8 million in November, down by EUR 46...