NBS Limits the Range of RSD/EUR Exchange Rates in Exchange Offices
At its meeting today, the NBS Executive Board adopted the Decision Amending the Decision on Operating Terms and Procedures in the Foreign Exchange Market and the Decision Amending the Decision on Terms and Manner of Performing Exchange Operations.
These Decisions limit the lowest buying exchange rate and the highest selling exchange rate which authorised exchange dealers and the public postal operator may apply in the purchase and/or sale of foreign cash – the euro, to ±1.25% relative to the official middle RSD/EUR exchange rate applicable on a given day.
In the exchange rate list of an authorised exchange dealer and the public postal operator the buying exchange rate per unit of foreign currency – the euro shall not be lower than the official middle RSD/EUR exchange rate applicable on a given day by more than 1.25%, and the selling rate shall not be higher than the official middle RSD/EUR exchange rate applicable on that particular day by more than 1.25%.
The aim of the limitation is to prevent the instances when, due to the absence of market competition, the buying/selling rates of authorised exchange dealers differ considerably from those applied by most other authorised dealers. As a rule, such deviations are observed in some exchange offices (at the airport, petrol stations, shopping malls etc.) which, in the absence of competition, apply significantly lower/higher exchange rates when purchasing/selling foreign cash – the euro, compared to customary rates applied on a given day by other authorised dealers which face market competition.
In adopting the Decisions, the NBS was guided by the data indicating that the majority of authorised exchange dealers apply buying/selling exchange rates for the euro in the range narrower than ±1.25% relative to the official middle RSD/EUR exchange rate on a given day. This limitation will therefore not affect the operation of the majority of authorised exchange dealers or exchange operations of the public postal operator.
The above Decisions will apply as of 1 January 2019.