NBS: End-November FX reserves at 28.7 bln euros

BELGRADE - National Bank of Serbia (NBS) FX reserves reached 28,704.6 mln euros at end-November, their highest end-of-month level to date, the central bank has said.

The reserves were up by 416.6 mln euros relative to end-October, the NBS said in a statement.

"They covered 179.7 pct of money supply M1 and 7.3 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 liabilities on other grounds) came at 24,456.9 mln euros – the highest end-of-month level, up by 423.4 mln euros from the month before.

The greatest inflows to FX reserves in November, worth 265.0 mln euros net, originated from NBS interventions, i.e. purchases in the domestic FX market. Net inflows also came from FX reserves management, banks’ allocation of FX required reserves, grants and other sources, in the amount of 102.7 mln euros.

The inflows were more sufficient to compensate for the outflows recorded on account of the government’s debt repayment in respect of FX loans and other FX liabilities (219.2 mln euros).

FX reserves were also propped up by a significant positive net effect of market factors worth 268.1 mln euros, mainly reflecting the dollar’s appreciation against the euro by around 2.7 pct in the international market," the NBS also said.