Serbian central bank says it was proactive in 2022

Narodna banka Srbije, Banka, Srbija, zgrada,
Shutterstock

The National Bank of Serbia (NBS) said on Thursday that it had been proactive during 2022, investing effort to to ease the effects of the global crisis.

According to the press release, the Serbian national currency the Dinar gained 0.2 percent against the Euro, NBS hard currency purchase on the FX market exceeded sales by 700 million Euro, its gross hard currency reserves reached a record high of 18 billion Euro for the first time and the gold reserves increased by 1.1 tons to 38.5 tons.

It said that foreign direct investments totaled more than 4.3 billion Euro, adding that the percentage of NPLs dropped to the lowest ever level of 3 percent.

The NBS said that inflation was lower than in other countries with similar monetary policies and that the relative Relative stability of the EUR/RSD exchange rate was preserved. It claimed that trust in the banking system was maintained and added that instant payment services were developed.

“In December 2022, the NBS issued the first two licenses for virtual currency services, based on the Law on Digital Assets, allowing the use of virtual currency services in Serbia.

“Despite challenges unprecedented in the global economy in the past decades, during 2022 the Serbian economy continued to grow and develop, against the backdrop of several intertwined crises. The NBS also played a role in overcoming the challenges, mitigating the economic consequences of the pandemic and the energy crisis, and continuing economic growth and development – all thanks to measures adopted in full coordination with the Serbian Government. We were able to respond thanks to the built buffers and accumulated reserves. At the level of 2022, Serbia’s FX reserves reached a record high, the relative stability of the dinar exchange rate was not threatened at any point, and our banking sector remained stable and well capitalised. Serbia has a strong track record of solid macroeconomic performance, and all the results achieved even in the most challenging conditions are an important pillar of our defence against any shocks going forward, as well as a guarantee of the preservation of our growth prospects”, NBS Governor Jorgovanka Tabakovic is quoted as saying in the press release.