At the end of December 2024, the gross foreign exchange reserves of the National Bank of Serbia (NBS) reached a record high of 29.29 billion euros. This marked an increase of 589.9 million euros compared to the end of November, and a rise of 4.38 billion euros compared to the end of 2023.
These reserves are more than sufficient to cover 167.2% of the M1 money supply and 7.4 months of imports of goods and services, more than double the standard required for adequate coverage of imports. The NBS also reported that net foreign exchange reserves, which are calculated as gross reserves minus banks’ foreign currency assets, obligations to the International Monetary Fund, and other factors, reached an all-time high of 24.69 billion euros at the end of December.
Net foreign exchange reserves increased by 236.4 million euros compared to November and by 3.91 billion euros compared to the end of 2023. The largest inflows into the reserves in December were driven by the allocation of mandatory foreign exchange reserves of banks (378 million euros) and the NBS’s interventions in the domestic foreign exchange market, purchasing 355 million euros in foreign currency.
Additional inflows, totaling 84.4 million euros, were realized through foreign exchange reserves management, donations, and other sources. These inflows more than offset the outflows caused by the net deleveraging of foreign currency loans and liabilities by the state, amounting to 339.2 million euros.
The growth in reserves was also influenced by positive market factors, with a net effect of 111.7 million euros, primarily due to a 1.6% strengthening of the dollar against the euro on the international market.
In 2024, gross foreign exchange reserves grew by 4.39 billion euros, driven largely by net purchases of foreign currency by the NBS, totaling 2.72 billion euros. Other significant inflows included 837.9 million euros from the allocation of mandatory foreign exchange reserves, 550.8 million euros from foreign exchange reserves management, and 331.3 million euros from donations and other sources.
These inflows were more than sufficient to cover outflows related to the state’s net deleveraging of foreign currency loans and other liabilities, which amounted to 1.83 billion euros.
In comparison to the end of 2023, positive net market effects totaled 1.78 billion euros, driven by a 26.6% increase in the price of gold and a 6.4% strengthening of the dollar against the euro on international markets.
