Serbia’s gross foreign-exchange reserves reached a record €30.805 billion at the end of August, rising by about €303.5 million during the month, according to the National Bank of Serbia (NBS). Net reserves stood at €26.328 billion, strengthening the central bank’s external liquidity position as energy-import costs and geopolitical uncertainty continue to create risks for smaller European economies.
Gold Gains Larger Role in Reserve Portfolio
The composition of Serbia’s reserves has also changed significantly, with gold becoming a major component of the country’s financial buffer. The NBS held 54.99 tonnes of gold at the end of August, valued at approximately €6.96 billion. Gold therefore accounted for 22.6% of total gross reserves.
The central bank continued adding domestically produced gold to its holdings during August, purchasing another 200.7 kilograms from Serbia Zijin Copper. The purchases connect Serbia’s expanding mining sector directly with the management of its official foreign reserves. Gold production around Bor and the Timok mining district has become an important part of the country’s industrial and export activity, with some of the output being transferred directly into official reserves.
Reserve Strategy Brings Diversification
Gold provides diversification from currencies and government securities and carries no direct counterparty risk. It has also traditionally been viewed as an asset that can perform strongly during periods of geopolitical and financial stress. For Serbia, which operates a managed exchange-rate regime and periodically intervenes in the foreign-exchange market, maintaining substantial liquid reserves remains important for monetary stability.
The record reserve level gives the NBS additional capacity to support the dinar if external volatility increases. It also provides a buffer against disruptions affecting foreign capital flows, energy imports and international financing conditions.
Higher Gold Share Changes Risk Profile
The larger allocation to gold also changes the risk characteristics of Serbia’s reserve portfolio. Unlike foreign bonds or deposits, gold does not provide conventional interest income. Its market value can also fluctuate sharply, potentially increasing movements in the euro-denominated value of total reserves. Part of the increase recorded in August reflected higher international gold prices rather than additional purchases.
With gross reserves above €30.8 billion, Serbia nevertheless holds a substantial external financial buffer that supports its capacity to meet external financing and import needs and underpins confidence in the dinar. Gold now represents 22.6% of total reserves, making it a significant component of Serbia’s sovereign liquidity portfolio and linking reserve management more closely to international bullion prices and domestic mining production.
