BELGRADE: Serbia's central bank continued sales of euros on the currency market on Wednesday, after having sold 10 million euros a day earlier to support the dinar, which is weakening amidst expectations of the adoption of 2015 budget, dealers said.
The bank, which so far this year sold over 1.7 billion euros ($2.07 billion), intervened as the dinar traded between 122.4 and 122.2 to the euro. The currency recovered to 121.95 at 0935 GMT.
Serbian lawmakers on Monday began debating the 2015 budget, drafted in line with a 3-year loan deal agreed with the International Monetary Fund, that sets deficit at around 5.8 percent of output.
The budget which was delayed by almost a month, envisages cuts of financial support to loss-making state firms in the recession-hit Serbia which annually total around a billion, as well as around 10,000 job cuts in the public sector.
Last week the central bank purchased euros to tame excessive strengthening of the dinar bolstered by the news about probable Chinese investments in Serbia and increased demand due to seasonal payments
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