BELGRADE, Nov 10 (Reuters) - The Serbian central bank bought euros on local interbank market on Friday to stem gains of the dinar driven by strong demand for Serbia’s maturities, dealers said.
The intervention came a day after central bank Executive Board decided to hold the key rate at 3.5 percent.
The bank stepped in as the dinar traded at 118.37 to the euro. After the intervention the dinar retreated to 118.6 to the euro.
The central bank which keeps the dinar in a managed float to the common currency, so far this year bought more than 1.2 billion euros ($1.40 billion) to prevent excessive oscillations of the dinar.
$1 = 0.8590 euros Reporting by Aleksandar Vasovic; Editing by Ivana Sekularac