NBS: Foreign exchange reserves at 29.6 billion euros end of June

Serbia's National Bank (NBS) reported that gross foreign exchange reserves totaled 29.6 billion euros as of the end of June, marking a decrease of 273.2 million euros compared to May. Despite this reduction, the reserves remain robust, covering the M1 money supply by 164.3% and providing approximately 6.8 months of import cover for goods and services, significantly exceeding international benchmarks.

Net foreign exchange reserves, which exclude funds held by banks for mandatory reserves and IMF obligations, stood at approximately 25.1 billion euros at the end of June. This represents a decrease of 362.8 million euros from the previous month. The NBS noted that inflows during June were substantial, primarily from the bank's net purchase of foreign currency on the domestic market amounting to 270 million euros. Additional inflows came from bank reserve requirements and the management of foreign reserves, totaling 88.4 million euros.

These inflows were sufficient to offset outflows, which included the state's foreign currency debt payments totaling 411.8 million euros. However, negative market effects significantly impacted the reserves. These effects, stemming from international market fluctuations, included an approximate 11.4% decrease in the price of gold in U.S. dollars, partially counteracted by a 2.2% strengthening of the U.S. dollar against the euro.

Serbia's gold reserves reached a record high of 54,565.2 kilograms by the end of June, valued at 6.2 billion euros, constituting 20.9% of the gross foreign exchange reserves. During June, the NBS purchased an additional 250.9 kilograms of gold from the domestic company Ziđin Srbija. Despite the increase in quantity, the value of gold reserves decreased by 617.7 million euros due to market factors. Since the beginning of the year, the value of gold reserves has increased by 4.8 million euros, with a total purchase of 2.1 tons of gold and market effects contributing to this change.