Serbia's central bank (NBS) sold EUR 30mn on the domestic currency market on January 28 , after selling EUR 60mn a day earlier to support the local currency and ease its daily volatility, the bank said in a statement. The local dinar currency started weakening in early 2014 due to the seasonally higher FX demand by domestic energy importers, and anxiety of international financial markets due to the US Fed's decision to taper its quantitative easing programme as of January this year, the NBS said in a separate statement on January 28 . The bank also noted that nearly all currencies in the region depreciated, adding that most of these countries also recorded a rise in their risk premiums as a result of higher yields and the price of their sovereign debt. Nonetheless, while the dinar lost only around 1%, the Turkish lira, despite massive central bank interventions, fell against the euro by 7.6%, whereas the Hungarian forint lost 2.3%, the Romanian leu slid 1.7% and the Polish zloty fell around 1%, the NBS underscored. The NBS has set an indicative dinar/euro exchange rate of 115.62 RSD for one euro on January 29 , unchanged compared to the day before and up from 114.64 at end-December 2013 . The depreciation sentiment will sustain during the following months taking into account the anticipated early parliamentary elections in March. In 2013, total central bank interventions stood at EUR 1.1bn , down from EUR 1.35bn a year ago. The bank's intervention policy was active in both ways - appreciation and depreciation. Since the start of 2013, it bought EUR 615mn and sold EUR 435mn on the domestic interbank market.
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