NBS gross FX reserves at 29.36 bln euros at end-November

BELGRADE - National Bank of Serbia (NBS) FX reserves hit 29,366.6 mln euros at end-November, their highest end-of-month level on record, after increasing by 2.5 mln euros from a month ago, the central bank announced on Friday.

In a statement, it said the reserves had covered "164.2 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 24,975.5 mln euros, down by 11.9 mln euros from end-October.

The greatest boost to FX reserves came from the positive net market effects (285.8 mln euros), as a result of developments in the international markets – chiefly the increase in US dollar gold prices by around 4.5 pct, while the weakening of the dollar against the euro by around 0.2 pct worked in the opposite direction.

Inflows to FX reserves in November came from FX reserves management, the allocation of banks’ FX required reserves, grants and other sources (in the total net amount of 95.6 mln euros)," the NBS said.

"Outflows were recorded on account of government net debt repayment under FX loans and payment of other FX liabilities (213.9 mln euros) and NBS interventions in the IFEM by selling foreign exchange in the amount of 165.0 mln euros (of the 210.0 mln euro total sale closed in November, 45.0 mln euros closed on the last two business days of the month was settled in December, in accordance with standard market principles).

At end-November, gold reserves amounted to a record 52,407.3 kilograms and were valued at 6,093.9 mln euros, accounting for 20.8 pct of gross FX reserves. During the month, gold reserves increased by 250.9 kilograms as a result of a purchase of 20 gold bars in the domestic market – from Serbia Zijin Copper. The value of gold reserves in euros rose in November by 279.5 mln euros, largely owing to market factors (an increase in the price of gold in dollars, while the weakening of the dollar vis-a-vis the euro worked in the opposite direction) and, to a lesser extent, owing to the purchase of gold during the month. Since the beginning of the year (January–November), gold reserves have increased by around 4.3 tonnes, while their value has risen by 2,210.3 mln euros (against the backdrop of an increase in the value of a fine ounce in US dollars by around 60.5 pct and the weakening of the dollar against the euro in the international market by around 10.2 pct)," it also said.