NBS purchased 3m EUR to prevent abrupt fluctuations of Dinar's exchange rate

National Bank of Serbia bought 3m EUR yesterday (August 5, 2008) on interbanking foreign currency market in order to prevent larger daily increase in value of Dinar against Euro.

NBS will continue to monitor fluctutations in the foreign currency market and it will be ready to react in case of larger daily oscillations of the exchange rate.

By the way, the central bank sells foreign currencies much more often than it buys them, and this was the first time since the end of year 2006 that it bought euros in the foreign currency market.

The interventions of NBS were mainly related to sale of foreign currencies. The last interventions of that kind took place at the beginning of May 2008.

Namely, people in the National Bank of Serbia say that such interventions are made when daily fluctuations are big.

Dinar resumed its growth yesterday and registered record middle value, so that the official middle exchange rate of Euro was 76.4988 RSD. The value of national currency went up by 0.21 RSD against the previous day and reached the highest value since November 2nd, 2004, when Euro's middle exchange rate amounted to 76.3612 RSD.

This year, Euro reached its highest value one day after the parliamentarian elections in Serbia, on May 12, when it was worth 83.8674 RSD.