ERIC: I do not believe NBS will let dinar exchnage rate jump

Source: Beta Friday, 26.12.2014. 10:12
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Dejan EricDejan Eric

Head of the Institute of economic sciences, Dejan Eric, estimated on Thursday that some businessmen’s fears that the National Bank of Serbia will let dinar exchange rate decrease are unjustified.

He said to journalists in Belgrade that letting dinar exchange rate decrease would have negative consequence due to inflation rate increase. He recalled mutual researches of the Institute of economic sciences and the Belgrade banking academy which show Serbia as “tight correlation between dinar exchange rate trends and inflation”

- I have to say that one of the good news is that inflation this year is below two percent which is far below lower limit of corridor projected by the central bank – Eric said.

He added that the fact that dinar weakening would probably contribute to cheaper export but he outlined that the question of which quality products Serbia could export are emerges.

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