Serbian dinar tops JP Morgan ranking

The Serbian dinar is neither overvalued nor undervalued, but realistically valued and tops a JP Morgan ranking of 25 currencies of developing countries around the world, according to a report released by the international financial institution.

09 Decembar 2019 14:37

BELGRADE - The Serbian dinar is neither overvalued nor undervalued, but realistically valued and tops a JP Morgan ranking of 25 currencies of developing countries around the world, according to a report released by the international financial institution.

The report highlights the Serbian dinar and the Philippine peso as completely realistically valued currencies, with the Mexican peso and the Peruvian sol very slightly deviating from the so-called fair value.

At the same time, the report, seen by Blic biznis, finds the currencies of 21 countries to be either overvalued or undervalued.

According to the report, the high ranking of the dinar is mostly due to a growth of productivity in Serbia and a high share of investment in GDP, a very high FDI inflow, reduced external vulnerability of the country and a decline of the external debt-to-GDP ratio from 73.5 pct in 2015 to 63.3 pct in 2019.

"This is another reaffirmation of the fact the National Bank of Serbia (NBS) is conducting the correct monetary policy and that comments by some economists about the dinar being potentially 'overrated' and about the NBS maintaining an 'artificial level of the exchange rate' are groundless," the NBS said in a statement.

Photo Tanjug/Z.Mirkovic, file


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