Serbia’s foreign-exchange reserves reached a record €30.8 billion in August, while the country’s gold holdings increased to 55 tonnes, strengthening the reserve position maintained by the National Bank of Serbia (NBS). The reserve stock was equivalent to around seven months of goods and services imports and approximately 164% of the M1 money supply, according to the central bank. Both indicators remained above commonly used reserve-adequacy thresholds.
Gold’s Share of Reserves Increases
Gold accounted for 22.6% of Serbia’s total foreign-exchange reserves in August. Holdings of 55 tonnes were more than three times the level recorded in 2012. The increase in gold holdings has taken place alongside relatively stable exchange-rate conditions. Between the beginning of the year and August, the dinar weakened by around 0.1% against the euro, despite periods of depreciation pressure during the first quarter and broader global uncertainty.
The NBS was a net seller of €95 million on the domestic foreign-exchange market during January-August, although the direction of its interventions shifted during the year.
NBS Interventions Change Direction
From April onward, appreciation pressures became dominant and the central bank turned into a net buyer of foreign currency. During that period, the NBS purchased a cumulative €1.125 billion more foreign currency than it sold. The increase in reserves provides monetary authorities with a larger buffer against external pressures, including changes in energy prices, regional geopolitical shocks and movements in international capital flows. The reserve position also supports confidence in Serbia’s financial system, where a significant share of lending remains denominated or indexed in euros.
Reserve Composition Diversifies
The higher proportion of gold adds another element to the structure of Serbia’s reserves. Gold does not generate interest income, but its value is not linked to the creditworthiness of another sovereign issuer and can move differently from currencies and government securities during periods of global financial stress. With reserves at €30.8 billion, Serbia has entered the next stage of its investment and external-financing cycle with substantially greater reserve coverage than a decade ago, while maintaining comparatively stable exchange-rate conditions. The larger reserve buffer provides the NBS with additional capacity to absorb periods of capital-market volatility without relying on abrupt exchange-rate adjustment.
