March 30 (SeeNews) - Serbia's central bank plans to hold regular foreign exchange (FX) swap auctions at fixed points as of March 31 to support the liquidity of the domestic financial system amid the spread of the novel coronavirus disease (COVID-19), it said.
The fixed swap points of the regular FX swap auctions with three-month and two-week maturity will be set at 0.85% for Serbian dinars and 0% for euro, while the volumes of swap purchase and swap sale will no longer have to be identical, the central bank said in a statement on Friday.
In this way, the role of the central bank in FX swap auctions in the future will not be exclusively that of an intermediary, but also of a supplier of dinars to banks at favourable interest rates.
Until now, the central bank has organises regular FX swap auctions at variable multiple swap points.
The central bank bought 127 million euro ($138 million) from commercial banks at an additional three-month forex swap auction on March 23 aimed to support the domestic financial system.
($ = 0.902425 euro)