FX reserves of NBS at EUR 10.1 billion in January

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The January FX reserves, covering 261% of money supply (M1) and more than six months’ worth of imports of goods and services, were up EUR 55.4 mln y-o-y. The largest outflows from FX reserves during the month were triggered by banks’ withdrawal of excess allocations under FX required reserves and NBS interventions in the interbank FX market (EUR 419.2 mln net).

Outflows were also caused by the redemption of maturing euro-denominated government securities, the settlement of the Republic of Serbia’s liabilities to foreign creditors, and repayment of drawings under the 2009 stand-by arrangement with the IMF (EUR 138.4 mln). Other outflows equalled EUR 3.1 mln net.

Major inflows in January came from the sale of euro-denominated government securities in the domestic financial market (EUR 159.6 mln) and disbursement of loans (EUR 38.3 mln), as well as interest receipts and grants (EUR 14.1 mln). Other inflows amounted to EUR 30.6 mln.

At end-January, net FX reserves, defined as FX reserves less banks’ FX required reserves and drawings under the arrangement with the IMF concluded in 2009, came at EUR 8,411.0 mln.

Trading volumes in the IFEM reached EUR 685.6 mln, down by EUR 314.9 mln from the month before.

The dinar depreciated against the euro by 1.3% in nominal terms in January. The NBS intervened in the IFEM by selling EUR 290 mln in order to ease excessive daily volatility of the exchange rate, the NBS release reads.