Household savings in Serbia denominated in dinars have surpassed the equivalent of €2 billion, reaching more than RSD 244 billion by mid-August 2026, as domestic-currency deposits continue to grow significantly faster than foreign-currency savings. Dinar savings increased by RSD 37.9 billion, or 18.4%, since the start of 2026, while foreign-currency savings rose by approximately €735.5 million, or 4.6%, to around €17 billion.
Dinar deposits now account for more than 10% of household savings, compared with less than 2% in 2012. Foreign-currency savings nevertheless remain more than eight times larger.
Dinar deposits gain market share
The faster growth of dinar savings points to a gradual change in household financial behaviour. Serbian households have traditionally preferred the euro for preserving wealth, reflecting past periods of inflation, currency instability and banking disruption.
Higher returns on dinar deposits have also supported the shift. Dinar savings can offer significantly higher nominal interest rates than euro deposits, while the dinar’s relatively stable exchange rate has reduced the perceived risk of holding domestic currency. For households, the calculation increasingly favours dinar deposits when higher yields are combined with limited exchange-rate movements.
Banks gain more local-currency funding
The increase in dinar deposits has implications for Serbian banks because it provides a larger pool of domestic-currency funding for dinar lending. This is particularly relevant as household borrowing continues to expand and a growing share of retail loans, including cash and consumer loans, is denominated in dinars.
A larger dinar deposit base can also improve the transmission of monetary policy by allowing changes in the National Bank of Serbia’s (NBS) policy rate to affect deposit returns and borrowing costs more directly. Greater use of the dinar does not eliminate the influence of the euro area, but it reduces the extent to which Serbia’s financial system depends on euro-denominated funding.
Companies remain heavily exposed to the euro
The household shift contrasts sharply with corporate financing. Around 75.8% of corporate lending remains euro-denominated or euro-indexed, reflecting the strong role of the euro in exports, imports, property, construction and investment planning.
Many Serbian companies generate euro-linked revenues, purchase machinery in euros or prepare investment budgets in the European currency. Euro borrowing can therefore provide a natural hedge, but it also leaves businesses more exposed to European interest-rate conditions. Serbia is consequently developing two distinct currency structures: households are gradually increasing their use of dinars for savings, while companies remain strongly dependent on euro-linked credit.
Income growth supports savings
The increase in deposits is also taking place alongside rising household incomes. Real wages increased 9.4% year on year in June 2026, creating greater capacity for households to save. Both dinar and foreign-currency deposits have grown, but the difference in growth rates is significant: 18.4% for dinar savings versus 4.6% for foreign-currency savings since the beginning of the year. This suggests that the increase is not solely a result of higher incomes but also reflects changing preferences over where households keep their savings.
The euro remains dominant
The latest milestone should not be interpreted as a broad departure from euro-based finance. Foreign-currency household savings remain around €17 billion, while corporate lending is predominantly euro-linked. Property values, major investment projects and foreign trade also retain strong euro connections.
The more significant development is that the dinar is gradually regaining a larger role in household finance. The more-than-10% share of household savings is therefore more important than the nominal RSD 244 billion record alone. It shows that domestic-currency deposits are gaining market share within Serbia’s household financial system, even as the euro remains dominant across the wider economy.
