Today afternoon: 78.15 buying rate

angelina markovic wrote:
>  
> http://www.b92.net/eng/news/economy-article.php?yyyy=2007&mm=07&dd=02&nav_category=95&nav_id=42167
>
> Euro falls to RSD 78.4
> 2 July 2007 | 11:28 | Source: Beta
> *BELGRADE -- The value of the euro has fallen to its mid-December 2004 rate.
>
> * The buying rate today is RSD 78.4, the same it was in December of last 
> year and 2004, which was also the so-called “black rate” of October 2000.
>
> The euro reached its peak in May 2006, when the exchange rate was at RSD 
> 88 for one euro.
>
> Economist Milan Kovačević said that the decrease in value in relation to 
> the Serbian dinar is the result of measures implemented by the National 
> Bank of Serbia (NBS) to protect the economy from an “inflatory budget” 
> for this year.
>
> The weakening of the euro is also attributed to smaller foreign currency 
> reserves in the NBS in the first quarter, compared to last year.
>
> Kovačević believes that the forced increase of the dinar's worth by the 
> NBS aims to decrease inflation.
>
> He said that the central bank does not have many mechanisms to defend 
> the value of the dinar because the foreign currency reserves are already 
> too high, as are the interest rates.
>
> Kovačević said that a better measure for the NBS would be to decrease 
> the referential interest rates, which would decrease all other interest 
> rates on the banking market.
>
> He concluded that the situation with the foreign currency market is not 
> beneficial for exporters or those selling products on the Serbian 
> market, because the current conditions of the dinar's value are still 
> uncompetitive in the long-term, and therefore economic growth may be 
> made more difficult.
>
>
>
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