Serbia’s central bank abolishes fee for exchange transactions

“The NBS Executive Board adopted this measure after a careful analysis of movements in the FX market, which clearly shows that the middle exchange rate of the dinar against the euro is stable, that banks have not changed the range of purchase and sale rates on their digital platforms, and that the majority of exchange offices apply selling rates significantly below the level that occasionally appears in public,” the central bank said.

The NBS pointed out that the rate of around 120 dinars for one euro, “which appeared only at certain exchange offices on their boards and was subsequently shared in public as a psychological panic trigger, was not formed based on market movements. It was possible solely in the case when an exchange office simultaneously applied the maximum permitted deviation of the selling rate from the middle rate of 1.25%, as well as the maximum legally permitted fee of 1%.”

“By adopting the new temporary measure that abolishes the possibility of charging a fee, there will no longer be grounds for selling rates that may have an alarming and misleading psychological effect on citizens to appear on exchange office boards or in public space. In this way, it will not be possible for rates of 120 dinars for one euro to be displayed in public,” the NBS said.

It emphasized that this decision is a continuation of the central bank’s consistent activities aimed at preserving the stability of the financial system, including previously taken measures that ensured increased availability of foreign cash and facilitated the operations of exchange offices under conditions of stepped-up demand.

“The measure does not have a predetermined time limit and will be applied for as long as market circumstances require. The NBS will keep a watchful eye on the situation and decide to revoke the decision at the moment of full stabilization,” the press release said.

The NBS said that it will not allow a distorted image of the situation on the FX market to be created through individual examples, reporting by certain media, or social networks, nor will it allow panic to be incited in such a way during sensitive moments, to the detriment of Serbia’s citizens and financial stability.