NBS gross FX reserves rise to 29.36 bln euros at end-October

BELGRADE - National Bank of Serbia (NBS) gross FX reserves hit 29,364.1 mln euros at end-October, their highest end-of-month level on record, after increasing by 312.3 mln euros compared to the previous month.

In a statement released this week, the NBS said the reserves covered "166.1 pct of money supply M1 and 6.9 months’ worth of the country’s import of goods and services, which is more than twice the level prescribed by the relevant 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) came at 24,987.3 mln euros, also reaching their historical high, up by 325.2 mln euros from end-September.

The greatest boost to FX reserves came from the positive net market effects (482.3 mln euros), as a result of developments in the international markets – chiefly the increase in US dollar gold prices by around 4.9 pct and the strengthening of the dollar against the euro by around 1.4 pct.

Inflows to FX reserves in October came from FX reserves management, the allocation of banks’ FX required reserves, grants and other sources (in the total net amount of 97.9 mln euros).

Outflows were recorded on account of NBS interventions in the IFEM (net sale of 75.0 mln euros) and government net debt repayment under FX loans and payment of other FX liabilities (192.9 mln euros)," it said.

At end-October, gold reserves totalled a record-high 52,156.3 kg and were worth 5,814.4 mln euros, accounting for 19.8 pct of gross FX reserves, the central bank also said.