And though the risk premium, measured by the Emerging Markets Bond Index, receded mildly since the beginning of the year, it is currently by around 160 basis points higher than in mid-2011. As a result, at the end of January the dinar was around 5% weaker vis-à-vis the euro than at the end of the third quarter of 2011.
However, compared to regional  BIS central bankers’ speeches  1  peers under a similar exchange rate regime, the dinar exchange rate was more stable during the last year, indicating that Serbia’s financial resilience to external shocks is somewhat greater than in earlier years. A recent increase in the foreign exchange market volatility was not accompanied by the drop in liquidity.