May 17 (SeeNews) - Serbia's central bank bought 87 million euro ($97.3 million) from commercial banks at an additional two-week forex swap auction on May 16 to prevent a potentially more significant rise in short-term interest rates, it has said.
The central bank, NBS, bought euro from banks at 990 weighted average swap points, supplying them with a total of 10.3 billion dinars for 14 days, it said in a statement on Thursday.
The transaction represents the sixth additional two-week swap auction carried out by the central bank since the beginning of the year.
The NBS organises regular two-week and three-month foreign currency swap auctions to bolster the development of the interbank market and support banks in overcoming the problems arising from the limits in interbank trading in the money market.
($ = 0.894345 euro)