NBS: FX reserves raised to EUR 28.1 billion at end-July

Climbing by EUR 606.8 million from a month earlier, gross NBS FX reserves reached EUR 28.1 billion at end-July, their highest level since monitored (since 2000), announced the National Bank of Serbia (NBS).

They covered 185.9% of money supply M1 and 7.4 months’ worth of the country’s imports of goods and services, which is more than twice the level prescribed by the adequacy standard, the press release says.

– Net FX reserves (gross FX reserves less banks’ FX balances on account of required reserves, liabilities to the IMF under the arrangement, and other grounds) also came at a record high – EUR 23.9 billion, up by EUR 642.9 million from end-June – the Central Bank emphasized.

The key boost to FX reserves in July came from the NBS interventions in the amount of EUR 465 million, which is the result of a EUR 240.0 million FX inflow from FX purchases executed on the last two business days in June and settled in early July (the usual settling of two business days after the transaction), as well as the net FX purchase in July in the amount of EUR 225.0 million. Inflows also came from the NBS’s FX reserves management, grants and other sources (EUR 159.6 million in total).

These inflows were more than sufficient to offset the outflows on account of the net settlement of government FX loan and other liabilities (EUR 48.7 million) and outflows on other grounds (EUR 90.5 million in total), the NBS said.

FX reserves were also propped up by the positive net effect of market factors worth EUR 121.4 million, mainly reflecting the rising price of gold by around 4.1%, while the dollar’s weakening against the euro by around 1.3% in the international market worked in the opposite direction.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

FX reserves July 2024