Dinar dropped again

Belgrade, June, 25 2010. (Serbia Today) - The value of the Serbian dinar (RSD) today dropped by another 0.17 percent. This came despite the National Bank of Serbia (NBS) intervention in the foreign exchange market worth EUR 20mn. The official exchange rate is RSD 103.7247 for one euro today, according to the central bank.  The NBS on Thursday sold EUR 20mn in the interbanking foreign exchange market in order to reduce the excessive oscillation of the exchange rate. Since the beginning of the year, the NBS has sold a total of EUR 1.208bn, including yesterday's transaction. The NBS announced this week that its foreign exchange reserves dropped by EUR 37.1mn in May and amount to about EUR 10.7bn at the end of May, while the nominal value of the domestic currency dropped 3.4 percent in the same period.