In 2023, a sustainable downward trajectory of inflation has been established, and it is expected to be twice as low at the end of the year compared to the end of 2022, maintaining relative stability of the dinar against the euro.
The gross foreign exchange reserves amount to 24.5 billion euros, marking the highest level ever, as announced by the National Bank of Serbia (NBS) while summarizing the achievements of the year. The NBS notes an increase of over a ton in gold reserves, totaling nearly 40 tons. Dinar savings have exceeded the equivalent of one billion euros, and foreign direct investment inflow is expected to surpass projected levels, reaching a record level observed last year.
For the preservation of financial system stability and the protection of financial service users, a measure has been adopted temporarily limiting interest rates on housing loans. Due to supervisory activities, the NBS has achieved a material effect of EUR 26 million for financial service users. Despite the unfavorable impact of international factors, credit rating agencies have maintained Serbia’s credit rating with stable prospects. According to ratings from agencies Standard & Poor’s and Fitch, the rating is one step away from an investment-grade status.
“We have completed another year filled with numerous challenges. The most important task was combating inflation, which posed a challenge globally. We managed to establish a strong downward trajectory, halving inflation. We achieved this through gradual and well-balanced tightening of monetary policy, ensuring that financial stability is not compromised and facilitating continued GDP growth,” stated NBS Governor Jorgovanka Tabaković.
She added that maintaining the stability of the dinar’s exchange rate has limited the spillover of import cost increases onto domestic prices, contributing to overall macroeconomic stability.
According to Tabaković, the stability of the domestic currency has been a protective symbol of the NBS for over a decade, and future efforts of the central bank will be directed towards preserving stability, contributing to easier business conditions for the economy, more job opportunities, and an improved quality of life for citizens.
