February 12 (SeeNews) - Serbia's central bank, the NBS, said it has bought 110.5 million euro ($124.7 million) from commercial banks at an additional two-week forex swap auction on February 11 aimed to prevent a potential more significant rise in short-term interest rates.
The central bank bought euro from banks at 1,091 weighted average swap points, supplying them with a total of 13.1 billion dinars for 14 days, the NBS said in a statement on Monday.
The transaction represents the second additional two-week swap auction after the one carried out by the central bank on January 28, when it bought 190 million euro from commercial banks, supplying them with 22.5 billion dinars.
The NBS organises regular two-week and three-month foreign currency swap auctions to bolster the development of the interbank market and support banks in overcoming the problems arising from the limits in interbank trading in the money market.
($ = 0.886352 euro)