NBS FX reserves at EUR 10.95 billion in May

NBS FX reserves amounted to EUR 10,955.5 million at end-May, covering M1 by 381 percent and around eight months of imports of goods and services, the National Bank of Serbia said in a release on its website.

The largest inflows to FX reserves during May came from the sale of euro-denominated RS securities in the domestic financial market (EUR 50.3 million) and credit disbursement and grants (EUR 26.3 million).

The largest outflows from FX reserves during the month were triggered by the servicing of frozen FX savings (EUR 144.4 million). Other outflows were generated on account of repayments to the IMF (EUR 101.6 million), the settlement of obligations to foreign creditors (EUR 32.7 million) and banks’ withdrawal of excess allocations under FX required reserves (EUR 23.6 million, net).

Net FX reserves, defined as FX reserves less banks’ required reserves and drawings from the IMF, came at EUR 7,198.0 million at end-May.

May trading volumes in the IFEM reached EUR 686.9 million, down EUR 121.7 million month-on-month. In the year to May, trading volumes in the IFEM reached EUR 4,125.1 million.

In May, the dinar appreciated against the euro by 1 percent and the NBS intervened in the IFEM by purchasing EUR 10 million to mitigate the excessive daily volatility of the exchange rate, whereas at the end of the month it sold EUR 35 million.