This factor was also of paramount importance for keeping inflation expectations anchored within the target band. Let me remind you that a recent analysis of the IMF, published in the October World Economic Outlook, has shown that depreciation is the key and statistically significant factor that leads to episodes of high inflation in emerging and advanced economies alike.
As you probably know, the National Bank of Serbia has emphasized repeatedly for a number of years already that the preserved relative stability of the exchange rate plays an important role not only in the achievement of the central bank’s objectives, but also in creating favourable business and investment confidence and attracting investment to Serbia.