Governor of the National Bank of Serbia (NBS) Dejan Soskic said late Friday that the stability of the dinar would depend on the speed at which the future government would be formed and the continuation of reforms in the country, including a new arrangement with the International Monetary Fund (IMF).

Since the beginning of the year, the dinar has depreciated by more than seven percent against the euro.

On Monday, the dinar will strengthening a little and the euro will cost six paras less, at RSD 111.83.

Soskic said that the pressures causing the weakening of the dinar against the euro had been present for some time.

These pressures were caused, primarily, by the lack of positive review under the arrangements with the IMF, then by the withdrawal of a number of important foreign investors, and now by a kind of risk that arises from the current phase of the country's political cycle, Soskic told Radio Television of Serbia (RTS).

The future of the domestic currency will depend on the steps taken by the future government, said Soskic. “It is very important for the government be formed as soon as possible, so that the reform process could be continued and intensified, particularly the reform of the public budget and the entire public sector,” said the NBS governor.

It is also very important to effect a positive review under the arrangement with the IMF, Soskic added.