Central bank advises citizens to opt for saving in dinars

BELGRADE -- Jorgovanka Tabakovic says the Serbian dinar (RSD) is now stronger, but that the central bank's task is to prevent major volatility of the exchange rate.

(Tanjug, file)
(Tanjug, file)

“The dinar has strengthened, but it is our task to prevent too big oscillations in both directions, and we use all measures at our disposal to ensure that, including interventions in the interbank forex market,” the governor of the National Bank of Serbia (NBS) told the daily Nase Novine.

Since the beginning of the year, the NBS sold EUR 90 million and bought EUR 380 million, the governor noted.

“Although we are not targeting any specific numeric value of the exchange rate, the reasons behind the oscillations are such that the NBS cannot be a passive onlooker," Tabakovic observed.

According to her, the central bank "has the obligation to look at the big picture, strive to ensure a low inflation rate, financial stability, and with its work and statements contribute to the system's overall stability."

Asked about the dissatisfaction with the bank's measures expressed by associations formed by citizens who took out loans indexed in Swiss francs, the governor said that "there are also satisfied citizens and associations who support NBS' measures and solutions - but they are not being reported about."

"Many would find nothing short of debt write-offs helpful. We have done the maximum under the present circumstances," Tabakovic said.

Asked whether she would advise citizens to save in euros or in dinars, Tabakovic said the NBS has done "everything" in order to make the domestic currency savings the first choice.

"Low inflation and stable inflationary expectations speak in favor of that. But any decision must be personal. Our job is to provide all the information necessary for this decision," she said.