Indirectly, it has allowed for lower National Bank of Serbia presence in the market and contributed to making the market more resilient by attracting longer-term and discouraging short-term hot inflows. We have also observed that dinarisation might be reacting positively to somewhat higher exchange rate flexibility and so does an increased use of hedging instruments.
That said, although in the long run our goal remains full flexibility of the exchange rate, until the FX market in Serbia becomes deep enough and fully efficient, the National Bank of Serbia stands ready to react with its large stock of FX reserves and ensure normal functioning of the market, should it be needed.