National Bank of Serbia to organize additional FX swap auction
On Monday, 23 March, the National Bank of Serbia (NBS) will hold an additional FX swap auction to supply dinar liquidity to the banking sector for a period of three months at a favorable interest rate of 0.85%.
By buying foreign exchange (euros) for dinars in this swap auction, the NBS aims to support the domestic financial system and economy amid the spread of the coronavirus (COVID-19).
The NBS stresses that neither dinar nor FX liquidity of the domestic banking sector are threatened, and that there are ample liquidity buffers (excess liquidity) to sustain the normal functioning of the financial system.
FX swap auctions are a regular instrument the NBS may use to regulate dinar and FX liquidity of the banking sector.