Serbia's central bank buys euros to stem dinar gains

BELGRADE: Serbia's central bank bought euros on the interbank market on Thursday to tame gains of the dinar, strengthened by exports, remittances from Serbs working abroad and sound economic performance, dealers said.

The bank, which so far in 2018 bought around 1.1 billion euros ($1.30 billion), intervened as the dinar traded at the rate of around 117.9 to the euro. The dinar later traded at the rate of 118.05.

The euro purchase coincided with the central bank's decision to keep its benchmark rate at 3 percent, citing low inflation and effects of monetary policy easing so far.