NBS FX reserves amounted to EUR 11,188 million at end-December, covering M1 by 327 percent or more than seven months of imports of goods and services.

The largest inflow to FX reserves came from the sale of RS securities in the domestic and international financial markets (EUR 844.7 million). Other inflows included bank allocations under foreign exchange reserve requirements (EUR 101.3 million net) and disbursement of loans and grants (EUR 20.8 million).

The largest outflow from FX reserves was registered on account of redemption of due euro-denominated RS securities (EUR 99.1 million). Other outflows reflected the settlement of liabilities to foreign creditors (EUR 65.1 million) and to the IMF (EUR 58 million). 

Net FX reserves, defined as FX reserves less banks' required reserves and drawings from the IMF, came at EUR 7,804.0 million.

Trading volume in the IFEM reached EUR 776.9 million, up by EUR 365.6 million on the month before. In 2013 as a whole, trading volumes in the IFEM amounted to EUR 9,150.6 million.

The dinar weakened against the euro in nominal terms by 0.5% in December. In order to ease excessive daily volatility of the exchange rate, the NBS intervened in the IFEM by buying EUR 180 million and by selling EUR 10 million.

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