BELGRADE, April 9 Serbia's central bank stepped
in to purchase euros from banks for the third straight day on
Wednesday, aiming to add liquidity to the local market and
prevent excessive strengthening of the dinar currency, dealers
This is the bank's sixth attempt to cap dinar's gains since
the Serbian Progressive Party (SNS) won a snap parliamentary
election last month, fuelling expectations of a new reform
The party, led by the outgoing deputy Prime Minister
Aleksandar Vucic, won 158 seats in the 250-member parliament on
March 16, enough to rule alone, but has indicated it wants to
form a broader alliance needed for reforms.
The SNS has started coalition talks with former coalition
partners, the Socialist Party, as well as with an ethnic
Hungarian minority party and the New Democratic Party of former
President Boris Tadic.
Vucic has pledged to implement austerity measures sought by
the International Monetary Fund to secure a new precautionary
loan. The Fund wants Serbia to cut its 2014 consolidated budget
gap, seen at 7.1 percent of output, and reduce spending.
The central bank which keeps the dinar in a managed float
against the euro. So far this year, it has bought a total of 70
million euros ($96.56 million). It last intervened on Tuesday
with a purchase of 20 million euros.
($1 = 0.7249 euros)
(Reporting by Aleksandar Vasovic; Editing by Zoran
Radosavljevic and Angus MacSwan)