NBS foreign exchange reserves declined by EUR 71.4 million in February, reaching at the end of the month EUR 10,574.9 million or USD 14,374.5 million. The ratio of foreign exchange reserves over money supply (M1) was 448 percent.

Together with foreign exchange reserves of commercial banks (EUR 1,353.0 million on 28 February), the country’s overall foreign exchange reserves came to EUR 11,927.9 million or USD 16,213.7 million.

NBS foreign exchange reserves declined mainly on account of sale of EUR 196 million in the interbank foreign exchange market (IFEM).

In February, inflows into NBS foreign exchange came from banks’ allocation of foreign exchange required reserves (EUR 17 million net) and the disbursement of the EIB loan (EUR 8.7 million).

Down by EUR 108 million from a month earlier, the volume of trading in the IFEM amounted to EUR 513.4 million.

To mitigate excessive daily fluctuations of the dinar and provide for smooth functioning of the financial market, the NBS sold in the IFEM EUR 196 million. Given more moderate daily volatility of the exchange rate relative to a month earlier, the NBS intervened to a lesser extent than in January (EUR 245.5 million).

In February, the dinar depreciated against the euro by 1.2% in nominal terms.