Tuesday December 2, 11:45 AM
Serbian dinar hits record euro low past 90 mark
BELGRADE, Dec 2 (Reuters) - The Serbian dinar hit an all-time low against the euro on Tuesday after breaking through the psychologically important 90 barrier.
The fall to as low as 90.54 dinars for a euro came a day after the central bank decided to keep its two-week repo rate at 17.75 percent.
'We do feel the effect of the crisis, naturally, this is one of them,' Milan Parivodic, a former Serbian minister of foreign economic affairs, told Reuters.
'Simply there is less money coming into the country (...). Less money in terms of investments, less money in terms of remittances. There is a feeling of insecurity and in that situation people simply buy euros.'
Parivodic said Serbians employed abroad could bring temporary relief by coming home during the holiday season and buying dinars. 'It should stabilise around 100,' he said, adding it was hard to predict the future course of the currency.
The dinar had traded at 89.88 on Monday according to the indicative course of the National Bank of Serbia. The dinar , has been among the biggest losers among east and central European currencies in recent months.
The central bank has spent more than 600 million euros since October to prop up the currency and provide liquidity in a market where trading has become much thinner than normal in recent weeks.
(Reporting by Adam Tanner; Editing by Patrick Graham) Keywords: SERBIA DINAR/
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