Euro almost 100 dinars, foreign exchange reserves at record level, says Governor

 
Belgrade, May. 15. 2010 (Serbia Today) - In Serbia the dinar is weakening against the euro, and European currency has reached a value of nearly 100 dinars. On the other hand outgoing National Bank of Serbia (NBS) Governor Radovan Jelasic said that the country's foreign exchange reserves are at a record high of EUR 11bn. Ahead of talks with the International Monetary Fund, Jelasic said that in those talks, there will be no discussion of withdrawing additional funds, but of not withdrawing them, since Serbia obviously does not need them. Discussing NBS's monetary policy for 2010 before the Serbian parliament's Finance Committee, Jelasic said that he expects the inflation rate will continue to drop by mid year, reaching 3.5 percent in June.  According to him, the drop is a result of restrictive monetary policy, frozen salaries and pensions and the effects of the economic crisis.  Jelasic noted that the reference interest rate has been in continual decline and is currently at eight percent.  He said that the inflation rate at the end of March was 4.6 percent and that NBS forecasts have the April rate at 4.3 percent. He reminded that NBS has set the 2010 inflation rate at six plus-minus two percent. Year-end inflation was 6.6 percent in 2009.