Gross National Bank of Serbia (NBS) foreign exchange (FX) reserves amounted to 29,018.4 mn euro at end-January 2025, having decreased by 276.1 mn euro from the previous month, said the NBS on Tuesday.

The gross FX reserves covered 177.4 percent of money supply M1 and 7.3 months’ worth of the country’s imports of goods and services, which is more than twice the level prescribed by the adequacy standard.

Net FX reserves (gross FX reserves less banks’ FX balances on account of required reserves, liabilities to the IMF under the arrangement, and other grounds) came at 24,624.7 mn euro, down by 68.6 mn euro from end-December, the NBS said.

An outflow of 275 mn euro net outflow from FX reserves was recorded as a result of NBS interventions in the local FX market – an outflow driven by the January FX sale worth 420 mn euro and an inflow from the net FX purchase concluded on the last two days of December in the amount of 145 mn euro.

An outflow was also registered in respect of banks’ withdrawal of FX required reserves –226.0 mn euro net (higher withdrawals are typical for the start of the year after higher allocations at the end of the year), as well as in respect of the government’s net debt repayment under FX loans and other FX liabilities (237.3 mn euro in total).

January inflows to FX reserves stemmed from FX reserve management (interest and coupons –44.5 mn euro) and grants and other sources (59.5 mn euro net).

A significant positive net effect of market factors worth 358.2 mn euro is attributable to trends in the international markets – the increase in US dollar gold price by around 7.7 percent and the strengthening of the dollar against the euro by around 0.2 percent.

Trading volumes in the Interbank Foreign Exchange Market (IFEM) amounted to 659.2 mn euro in January, down by 151.9 mn euro from the month before.

In January, the dinar weakened against the euro by 0.1 percent in nominal terms. The NBS sold 420 mn euro in the IFEM during the month, in order to maintain the relative stability of the dinar against the euro amid seasonally higher FX demand typical for the start of the year, said the NBS in a press release.