NBS gross FX reserves hit record-high 28.2 bln euros at end-August

BELGRADE - National Bank of Serbia (NBS) gross FX reserves reached 28,225.0 mln euros at end-August, their highest end-of-month level since monitoring began in 2000, the central bank says.

The reserves were up by 111.7 mln euros from a month earlier, the NBS said in a statement.

"They covered 182.2 pct of money supply M1 and 7.4 months’ worth of the country’s imports of goods and services, which is more than twice the level prescribed by the adequacy standard.

Net FX reserves (gross FX reserves less banks’ FX balances on account of required reserves, liabilities to the IMF under the arrangement, and other grounds) also came at a record high at the end of August – 23,984.3 mln euros, up by 71.0 mln euros from end-July," the NBS said.

"The largest inflow to FX reserves originated from NBS interventions in the local FX market (235.0 mln euros). Inflows also came from FX reserves management, grants and other sources, in the total amount of 247.8 mln euros.

These inflows were more than sufficient to offset the outflows from FX reserves on account of the government’s net debt repayment in respect of FX loans (134.6 mln euros) and matured FX securities issued in the domestic financial market (116.0 mln euros), and on other grounds (121.6 mln euros in total).

FX reserves were also propped up by the positive net effect of market factors worth 1.1 mln euros, mainly reflecting the rising price of gold by around 3.6 pct, while the dollar’s weakening against the euro by around 2.3 pct in the international market worked in the opposite direction," it also said.