NBS gross FX reserves hit record-high 22.585 bln euros at end-June

BELGRADE - National Bank of Serbia (NBS) gross FX reserves reached 22.585 bln euros at end-June, their highest end-of-month level since records began in 2000.

The reserves were up by 496.8 mln euros m-o-m, the NBS said in a statement.

"They covered 180 pct of money supply M1 and 6 months’ worth of the country’s imports of goods and services, which is twice the level prescribed by the adequacy standard.

Net FX reserves (gross FX reserves less banks’ FX balances on account of required reserves, liabilities to the IMF under SBA, and other grounds) also touched their all-time end-of-month high – 18,179.2 mln euros, having increased by 58.4 mln euros from May.

The June increase in gross FX reserves reflects primarily NBS interventions in the local FX market on the purchase side (315.0 mln euros net), and somewhat higher inflows on account of FX required reserve allocations typical for the end of the quarter (259.1 mln euros) and the disbursement of the second tranche under SBA with the IMF (199.8 mln euros). Inflows also came from FX reserves management, grants, and other sources (97.4 mln euros in total)," the central bank said in a statement.

"These inflows were more than sufficient to cover the outflows on account of government net repayment of FX loans (100.2 mln euros), and other payments for government needs and other reasons (85.4 mln euros).

Working in the opposite direction were the negative effects of factors in the international market (188.9 mln euros net), which largely stemmed from the fall in the global gold price (in USD) by around 2.7 pct and the dollar’s slide against the euro by around 1.6 pct.

Trading volumes in the IFEM amounted to 740.3 mln euros in June, up by 62.2 mln euros from the month before. In the six months of 2023, IFEM trading volumes totalled 4,028.4 mln euros," it also said.