Serbia’s C-bank Intervention Fails to Boost FX Market Liquidity – Dealers

“Maybe the intervention today [Thursday] is bit smaller than yesterday's but it was at the same level,” a local dealer told SeeNews. “The [exchange] rate is the same as yesterday, the intervention was also identical, at the same rate and nothing has changed.”

The dealer said the exchange rate was 84.80-85.00 dinars per euro by 1430 GMT versus 85.00 dinars per euro at Wednesday’s close.

The bank sold 50 million euro ($66 million) on Wednesday to boost liquidity on the country's stagnating foreign exchange market. On Monday it sold 26 million euro to prop up the falling dinar, which hit its 2008 lowest of 85.00 dinars per euro and has been sliding further down since then.

“The trading is not in big volumes, there is no big demand,” another dealer said. “The bank probably intervened to boost the liquidity. The rate has been calm during the whole day at a level of some 85.00 dinars per euro, plus/minus 0.10. It closed at this level yesterday.”

($=0.7713 euro)