The market must be the standard for the exchange rate

The Finance Minister of the Republic of Serbia, Mr. Bozidar Djelic declared that: “Nor the Prime Minister, nor the Neational Bank Governor, nor the Government can establish the exchange rate standards – Only the market can be the right criteriterion for the exchange rate values”. Calming the spirits, the Minister promised that “a responsible monetary and fiscal policy will be carried out in the future”, which will result with the presently reached stability of the dinar exchange rate maintenance, and the inflation rate reduction.

– Regarding our export corporations, we already established theree instruments aimed to stimulate their exportations. The first one represent the resources from the Development Fund, presenting only positive results. This money is not thrown out the window, nor did it dissapear – 50 Million Euros, already invested in the past, are now paid back, and will be allocated to new exportation programmes, with additional few million Euros, we provided for, through other sources. Customs duties reimbursment is also planned aiming to additionnally stimulate exporters, who successfully placed their products on feoreign markets. This mechanism, presumed having existed in the past on the Federal level, but througout whih the exporters did not receive any funds, is now active, and we have some, presently modest, raesoures available. Finally, the third mechanism aiming to the exportation stimulation, is the future creation of a Natonal Agency for the export guarantees. With the World Bank, and some other donators, we already reached an agreement, obtaining some 10 million US Dollars for the initial capitalization of the said institution, which is planned to start functionning by the end of teh year. This is the right manner to stimulate exporttations, more better than to speculate on the exchange rates, said Djelic in his declaration.
There is no reason for dinar exchange rate modifications. Besides, in the begining of this year, we passed from the fixed to the floating exchange rate, having everyday exchange rate values corresponding to the market. Considering the market itself, there are no indications on any noticeable modification of the exchange rate, in a forseeable future, declared Djelic, promissing that, during his mandate as the Finance Minister, he won’t be putting any preassure in order to reduce the probable deficit in the State Treasury, by additional currency issusing, wich could provoke the inflation.