Serbia’s C-bank To Double Dinar Mandatory Reserves on FX Deposits to 40% To Back Falling Local Currency

BELGRADE (Serbia), December 4 (SeeNews) – Serbia's central bank, NBS, will raise to 40% from 20% the share of mandatory reserves on foreign currency deposits that commercial banks have to maintain in Serbian dinars in an attempt to support the weakening local currency, the NBS governor said on Thursday.

This will be the second increase in the share of dinar-denominated mandatory reserves after NBS raised them to 20% from 10% in October in a bid to spur demand for dinars.

The NBS monetary committee will discuss this and other measures aimed at stabilizing the market by Monday the latest, Radovan Jelasic told a news conference.

A local bank dealer said the dinar firmed on the announcement to 90.50 per euro by 1220 local time [1120 GMT] on Thursday after touching a historic low of more than 92.00 per euro earlier in the day.

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