NBS FX reserves hit record-high 25.157 bln euros at end-May

BELGRADE - National Bank of Serbia (NBS) gross FX reserves reached 25,157.1 mln euros at end-May, their highest end-of-month level since monitoring began in 2000.

The reserves were up by 27.9 mln euros from the previous month, the NBS said in a statement.

"They covered 172.1 pct of money supply M1 and 6.7 months’ worth of the country’s imports of goods and services, which is more than 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 the arrangement, and other grounds) also came at a record high – 20,972.1 mln euros, up by 50.5 mln euros from end-April," the central bank said.

"The greatest inflows to FX reserves in May came from NBS interventions in the IFEM (130.0 mln euros). This amount reflects an inflow worth 100 mln euros from FX purchases carried out on the last two working days in April which were settled in early May, and FX purchases in May worth 30.0 mln euros. The purchase carried out on the last two working days of May (75.0 mln euros) will give a boost to FX reserves in June. Inflows also stemmed from the sale of government FX securities in the local financial market, FX reserve management, grants and other sources (189.4 mln euros in total).

These inflows were more than sufficient to cover the outflows on account of net government debt repayment in respect of FX loans and other FX liabilities (259.4 mln euros), and other grounds (48.7 mln euros).

FX reserves were propped up also by the positive net effect of market factors worth 16.6 mln euros, mainly reflecting the rise in the price of gold by around 1.8 pct, while the dollar’s depreciation against the euro by around 1.1 pct in the international market worked in the opposite direction," the NBS also said.