NBS gross FX reserves total 29.0184 bln dinars at end-January

BELGRADE - National Bank of Serbia (NBS) gross FX reserves amounted to 29.0184 bln euros at end-January 2025, having decreased by 276.1 mln euros from the previous month.

"They covered 177.4 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," the NBS said in a statement.

"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) came at 24,624.7 mln euros, down by 68.6 mln euros from end-December.

A 275.0 mln euro net outflow from FX reserves was recorded as a result of NBS interventions in the local FX market – an outflow driven by the January FX sale worth 420 mln euros and an inflow from the net FX purchase concluded on the last two days of December in the amount of 145 mln euros, which was settled two business days after trade (T+2) in line with the usual market principles and manifested in money flows in January. An outflow was also registered in respect of banks’ withdrawal of FX required reserves – 226.0 mln euros net (higher withdrawals are typical for the start of the year after higher allocations at the end of the year), as well as in respect of the government’s net debt repayment under FX loans and other FX liabilities (237.3 mln euros in total).

January inflows to FX reserves stemmed from FX reserve management (interest and coupons – 44.5 mln euros) and grants and other sources (59.5 mln euros net).

A significant positive net effect of market factors worth 358.2 mln euros is attributable to trends in the international markets – the increase in US dollar gold price by around 7.7 pct and the strengthening of the dollar against the euro by around 0.2 pct," the central bank said.