Serbia’s foreign-exchange reserves climbed to a record €30.5 billion at the end of July, supported by central-bank currency purchases and proceeds from government securities issued on international markets. The increase strengthened the country’s foreign-currency liquidity buffer, while the composition of the monthly rise included both market intervention and additional sovereign borrowing.
According to the National Bank of Serbia (NBS), gross reserves increased by €893 million during July. Net reserves, which exclude banks’ required foreign-currency deposits, IMF liabilities and certain other obligations, rose by €931 million to €25.99 billion, also reaching a record month-end level. The reserve stock at the end of July covered seven months of imports of goods and services, compared with 6.8 months in June. It was also equivalent to 168.3% of M1, according to the central bank.
Currency Operations and Government Securities Drive Increase
The NBS’s foreign-exchange operations provided the largest individual contribution to the July increase. Settlement of currency purchases added €570 million to reserves, including €135 million associated with transactions agreed at the end of June. Another €488 million came from the sale of Serbian government securities on international financial markets. The securities proceeds increased Serbia’s immediate foreign-currency liquidity but also added to public-sector liabilities and will generate future interest and repayment obligations.
Reserve-management income, donations and other transactions generated a combined net inflow of €138 million. This was more than enough to offset €155 million used for the government’s foreign-currency obligations and €148 million in negative valuation effects, mainly resulting from a weaker US dollar and lower prices for foreign securities. The July figures therefore reflect several different sources of reserve movement rather than solely underlying foreign-exchange earnings from exports, foreign direct investment or other balance-of-payments transactions.
NBS Maintains Dinar Stability Through Market Intervention
The Serbian dinar was almost unchanged against the euro during July and had weakened by only 0.1% against the euro during the first seven months of 2026. During July, the NBS purchased a net €435 million in the domestic foreign-exchange market, absorbing excess foreign-currency supply and limiting appreciation of the dinar. For the year as a whole through July, however, the central bank remained a net seller of €320 million as it continued its policy of maintaining the dinar’s relative stability.
The intervention therefore operates in both directions. The NBS can accumulate foreign currency when supply is strong and use its reserves to limit depreciation when demand for euros rises. Exchange-rate stability is particularly relevant for Serbian businesses and households because savings, lending, property prices and commercial agreements remain closely linked to the euro. A relatively stable dinar also helps limit the domestic impact of imported inflation affecting energy, machinery and consumer goods.
Record Gold Holdings Increase Reserve Diversification
Gold represented a significant share of Serbia’s reserve portfolio at the end of July. The country held a record 54.8 tonnes of gold, valued at €6.16 billion and accounting for 20.2% of gross foreign-exchange reserves. The NBS purchased another 226 kilograms of gold from Serbia Zijin Copper during July. Since the beginning of 2026, the central bank has acquired approximately 2.3 tonnes.
Gold provides diversification and does not carry direct counterparty risk, although its market value is subject to fluctuations in prices and exchange rates. Despite the increase in physical holdings, the euro-denominated value of Serbia’s gold reserves declined by €36.8 million during July as a result of currency and market movements.
Reserves Strengthen External Liquidity but Do Not Remove Exposure
The record reserve stock provides Serbia with greater capacity to meet foreign-currency obligations and respond to periods of financial or currency-market disruption. Large liquid reserves can also support investor confidence by demonstrating that the authorities hold sufficient foreign assets to cover debt repayments and periods when access to international markets becomes more restricted.
Serbia nevertheless remains exposed to external financing conditions. The economy depends on imported energy and foreign investment, while current-account pressures can increase when domestic consumption and infrastructure investment accelerate. Maintaining exchange-rate stability can also require substantial central-bank intervention if capital flows reverse or geopolitical developments increase demand for euros. The July reserve figures consequently combine a record level of external liquidity with a financing structure that includes government borrowing and continued NBS intervention in the foreign-exchange market.
