Serbia's central bank said it intervened on Tuesday to support the dinar but denied its euro sales on the interbank market were related to Prime Minister Aleksandar Vucic's announcement about a snap parliamentary vote. According to dealers, the central bank, which a day earlier sold 20 million euros, began selling more on Tuesday as the dinar traded at around 122.89 per euro, roughly the same as its daily median exchange rate. The dinar traded at 122.85 after the intervention.
Later in the day, the central bank said its interventions were unrelated to Vucic's election announcement on Sunday. His conservative Progressive Party still enjoys strong poll ratings despite cuts in public sector wages and pensions intended to prepare Serbia for European Union membership. The bank attributed its intervention to seasonal factors and influences from abroad including turbulence on Asian markets. "Elections will not jeopardise a single investment project or the arrangement with the International Monetary Fund, hence, political and economic progress will not be jeopardised," the bank said in a statement.
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