Control of Exchange Offices in Serbia in Progress Due to Irregular Exchange Rate

The National Bank of Serbia has started a control of exchange offices in Serbia based on its own findings and complaints made by citizens that the exchange rates at exchange offices are not in line with the band proscribed by the decisions of the NBS, according to which the euro sale exchange rate may not be higher than the official middle exchange rate on the given date by more than 1.25%, whereas the purchase exchange rate may not be lower by more than 1.25%.

– We note that, according to the Law on Foreign Exchange Affairs, for exchange offices which do not act in line with the NBS regulations, the following penalties are proscribed: RSD 100,000 to 2,000,000 for a legal entity and RSD 10,000 to 500,000 for an entrepreneur – it is said on the website of the NBS.

Also, since the NBS has been controlling the legality of exchange office activities since January 1, 2019, if it determines irregularities, that is, law violations, in the control process, in addition to a request for initiating offence proceedings, which is filed to the competent magistrates court, the NBS can also adopt the decision to take away the authorization for the carrying out of exchange office activities if it is determined that the authorized exchange office has not executed the order for removing the irregularities, that is, law violations which it is provided with in the procedure of controlling the exchange office activities.

– We once again emphasize that there is no reason to panic, that the NBS is already providing banks with dinar and foreign exchange liquidity in a sufficient measure, and the supply of banks with foreign cash has been increased so that the exchange offices would be able to respond quickly and efficiently to the increased demand by the citizens, which has occurred.

We repeat, there is plenty of foreign exchange and foreign cash and we are continuously supplying the banking sector with sufficient amounts. Citizens therefore need not worry, nor should there be any panic, neither when it comes to withdrawing deposits from the banks, where the assets are the most secure and which are well capitalized and very liquid, nor when it comes to purchasing foreign exchange at exchange offices. The NBS is securing sufficient funds and meeting all the requests of the banks, whereby we are proving that we are ready to react without delay and in an adequate manner. We expect the banks to transfer the cash to the exchange offices as soon as possible, which will then meet the demand of the populace. The NBS has ordered banks that there should be no halt in the supply of exchange offices with cash at any moment – it is added.

The NBS notes that the stability of the exchange rate is not and will not be brought into question at any moment and that citizens should know that.

– It’s not a question of whether the NBS has enough instruments and whether it will react. The NBS has been continuously acting to preserve the stability. We met this crisis with a record-high level of foreign exchange reserves of over EUR 16 billion and we have quite enough funds and skills to preserve the stability, which has no alternative.

Narodna banka Srbije Beograd

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