Finance Minister: Speculators depreciate dinar

Belgrade, May, 22. 2010 (Serbia Today) - Minister Diana Dragutinovic said on Wednesday that the exchange rate changes were the consequence of “speculative strikes”, and that the National Bank of Serbia (NBS) should continue to prevent sudden changes of the dinar exchange rate. In a statement published by Blic newspaper today, she underscored that the amount of foreign exchange reserves guarantees that the domestic currency will be defended from speculative strikes.  Asked what the state would do to prevent a further fall in the value of the dinar, Dragutinović said that “the state will contribute to an increase of foreign currency offer in the country by drawing the credit funds for the construction of infrastructure, which would stabilize the dinar rate.” The changes of the rate so far have not been dramatic, and in respect of the country's economic status they may be evaluated as desirable, the minister said.  “The changes of the dinar rate in the past year and a half were mainly gradual, and both the real sector and citizens had enough time to adjust to the new rate. Serbia's foreign trade and payment balance show significant improvement signs, which did not happen by itself. The dinar depreciation, as well as the reduction of the domestic expenditure, particularly that of the state, contributed to that”, said Dragutinovic