Serbia's central bank buys euros to stem dinar gains

BELGRADE: Serbia's central bank bought an unspecified quantity of euros on the interbank market on Tuesday to stem dinar gains against the common currency, dealers said.

The bank, which keeps the dinar in a managed float on the foreign currency market, stepped in as the currency, bolstered by a demand- and investment-based inflow of euros, traded at 117.88 to the euro. After the intervention it weakened to 118.23.

"The bank intervened twice today," a dealer who asked not to be named told Reuters.

So far in 2018, the bank has bought 660 million euros ($817 million) and sold 180 million euros to cushion fluctuations in the dinar rate. On Monday it purchased 20 million euros.