National Bank of Serbia amends exchange-operations rules to ease cash euro distribution and warns of sanctions for misconduct

The National Bank of Serbia announced measures to keep banks’ and authorized exchange offices’ access to cash euros and other foreign currencies functioning smoothly during periods of increased demand, including an amendment to the rules governing exchange operations to facilitate supply from banks to exchange offices. It stated that Serbia’s foreign exchange market is stable and that there is no shortage of euros or other foreign currencies for retail exchange transactions. The Executive Board amended the regulation on the conditions and manner of performing exchange operations to further streamline the channel through which banks supply cash foreign currency to exchange offices. The central bank pointed to record foreign exchange reserves and said banks and exchange offices are supplied with sufficient cash to meet domestic demand, allowing citizens to buy or sell foreign currency freely and to purchase euros at rates within the legally prescribed range around the National Bank of Serbia official middle exchange rate. Market participants were reminded of the obligation to act lawfully, with the National Bank of Serbia indicating it is ready to severely sanction those seeking to benefit from the situation; citizens who encounter difficulties were encouraged to file complaints about suspected illegal conduct for supervisory checks. The National Bank of Serbia said it will continue to closely monitor developments in the domestic foreign exchange market and react if necessary to preserve relative exchange-rate stability.