Volatile Times

May 2008 | Currency Forecast

The Serbian dinar continues to experience volatility against the euro, at one point trading at RSD82.61/EUR on May 15. Going forward, further instability for the unit lies ahead, with the potential for trading swings of up to 7.0% in less than a week a possibility. Given that political risk levels significantly impacts RSD/EUR, we expect that as the negotiations for the formation of the governing coalition drag-on, this is likely to lead to a depreciation of the dinar in the short-term.

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