NBS foreign exchange reserves declined by EUR 130.6 million in March, reaching at the end of the month EUR 10,444.3 million or USD 14,007.9 million. According to preliminary data, net foreign exchange reserves, defined as foreign exchange reserves less banks’ foreign exchange required reserves and funds disbursed under the IMF loan, equalled EUR 6,181.0 million.

The ratio of foreign exchange reserves to money supply (M1) was 462 percent. Foreign exchange reserves covered nine months of imports of goods and services.

Together with foreign exchange reserves of commercial banks (EUR 1,530.7 million on 31 March), the country’s overall foreign exchange reserves came to EUR 11,975.0 million or USD 16,060.9 million.

NBS foreign exchange reserves declined mainly on account of sale of EUR 190.0 million in the interbank foreign exchange market (IFEM) and settlement of liabilities to foreign creditors (EUR 68.8 million).

March inflows into NBS foreign exchange reserves came from loan disbursements (EUR 57.8 million) and banks’ allocation of foreign exchange required reserves (EUR 38.5 million net).

Up by EUR 48.8 million from a month earlier, the volume of trading in the IFEM amounted to EUR 562.2 million.

To ease excessive daily volatility of the RSD/EUR exchange rate and to ensure uninterrupted functioning of the financial market, the NBS sold EUR 190 million in the IFEM in March. Overall, the NBS sold EUR 631.5 million in the first quarter.

The dinar depreciated against the euro in the period under review by 0.13% in nominal terms.