NBS gross FX reserves reach record-high 29.9 bln euros at end-May

BELGRADE - At the end of May, National Bank of Serbia (NBS) gross FX reserves reached a historical end-of-month high of 29,882.1 mln euros, rising by 1,725.8 mln euros compared to a month earlier.

The reserves "covered 167.5 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," according to a statement released by the NBS.

"Net FX reserves (gross FX reserves less banks’ FX balances on account of reserve requirements, liabilities to the IMF under the arrangement, and other grounds) were also record high – at 25,418.8 mln euros, having increased by 1,793.3 mln euros from end-April.

The largest inflow to FX reserves during May came from the sale of government securities in the international financial market in the total amount of 2,907.6 mln euros (triple tranche consisting of two euro- and one dollar-denominated eurobonds). Significant inflows also stemmed from the NBS’s interventions in the local FX market, i.e. net purchase of foreign currency in the amount of 90.0 mln euros (the purchase worth 45.0 mln euros agreed in late April was settled, i.e. had an effect on FX inflow in May), as well as from FX reserve management, grants and other sources (in the total net amount of 120.6 mln euros)," the central bank said.

"Outflows from FX reserves were driven by the government’s net debt repayment under FX loans, early buyback of a portion of debt under eurobonds issued in the international financial market (maturing in 2027), due securities in the domestic market and other FX liabilities in the total amount of 1,338.8 mln euros. The withdrawal of banks’ FX required reserves accounted for an outflow of 73.6 mln euros net.

Net market effects were positive, amounting to 20.0 mln euros, and reflect movements in international markets – primarily a rise in the price of foreign securities in the NBS portfolio and the US dollar’s strengthening against the euro by around 0.2 pct, while a decrease in the gold price in US dollars by around 1.4 pct worked in the opposite direction.

At end-May, gold reserves stood at record 54,314.3 kg and were valued at 6,818.1 mln euros, accounting for 22.8 pct of gross FX reserves. During the month, gold reserves increased by 351.3 kg, as a result of the purchase of 28 gold bars in the domestic market – from Serbia Zijin Copper. The value of gold reserves decreased in May by 39.8 mln euros, owing to market factors (a decrease in the gold price in US dollars by 1.4 pct and the US dollar’s appreciation against the euro by 0.2 pct).

During 2026, gold reserves increased by around 1.8 tonnes, while their value climbed by 622.4 mln euros, reflecting mainly the impact of positive market factors (the value of a fine ounce in dollars increased by around 5.5 pct, and the dollar strengthened against the euro by around 0.8 pct in the international market)," the NBS also said.