The gross foreign exchange reserves of the National Bank of Serbia (NBS) at the end of November this year amounted to around 17.3 billion euros, which is the new highest level at the end of the month since the data has been monitored, the NBS announced.
In November, gross foreign exchange reserves increased by 396 million euros.
As announced, this level of foreign exchange reserves ensures coverage of the M1 money supply of 151 percent and five months of imports of goods and services, which is almost twice the standard. Net foreign exchange reserves (foreign exchange reserves less the foreign currency assets of banks based on mandatory reserves and other bases) at the end of November amounted to 14.2 billion euros and compared to the end of the previous month, they were more by 297.4 million euros.
The increase in foreign exchange reserves is primarily the result of the activities of the NBS on the domestic foreign exchange market (inflow based on the purchase of foreign currency in the amount of 410 million euros), and the increase in foreign exchange reserves in November was additionally influenced by net inflows based on the banks’ required foreign exchange reserves, management of foreign exchange reserves, donations and on other grounds (in the total amount of 169.2 million euros).
Those inflows were more than enough to cover the net outflows for the purpose of settling foreign exchange obligations of the state based on loans and securities in the net amount of 88.6 million euros, as well as on other grounds (33.2 million euros in total).
The effect of market factors was negative in the net amount of 61.4 million euros and was largely the result of the weakening of the dollar against the euro on the international market by about four percent, the central bank stated.
The volume of realized foreign exchange trade on the interbank foreign exchange market in November amounted to 887.6 million euros and was 96.9 million euros higher than in the previous month. From January to the end of November, around 8.8 billion euros were realized in interbank trade, the NBS announced.
The value of the dinar against the euro in November was almost unchanged, while since the beginning of the year the dinar has nominally strengthened against the euro by 0.2 percent. The NBS bought 350 million euros on the interbank foreign exchange market in November, while since the beginning of the year it has bought a net of 450 million euros, in order to maintain the relative stability of the exchange rate of the dinar against the euro.