The National Bank of Serbia (NBS) and the Serbian government signed a Memorandum on the strategy of dinarization of the domestic financial system, a document aimed at achieving a satisfactory degree of use of the RSD to further strengthen the country's financial and macroeconomic stability.

The document defines the objectives, measures and activities to be taken for strengthening the confidence in the national currency and its use in the financial system, the NBS said in a relelase Friday.

By signing the document, the NBS and the government acknowledged the need for a greater use of the dinar in the financial system, which should, in addition to improving the financial stability, reduce the risk arising from exchange rate fluctuations, strengthen the effectiveness of monetary policy and thereby help create conditions for a strong and sustainable economic development.