Siniša Mali warns of potential dinar devaluation

Serbian Deputy Prime Minister and Minister of Finance Siniša Mali has warned of the economic risks associated with a potential weakening of the Serbian dinar. Speaking in the program ‘U ringu’, Mali addressed political criticisms regarding the exchange rate, specifically responding to claims made by Dejan Šoškić, a candidate for Prime Minister and economist.

Mali argued that a significant drop in the value of the dinar would lead to a sharp decrease in the real value of salaries and pensions when converted to euros. He cited the period between 2009 and 2012, during Šoškić’s tenure as Governor of the National Bank of Serbia, noting that the dinar lost 50 percent of its value against the euro during that time.

Using July’s average salary of 121,400 dinars (approximately 1,034 euros) as a benchmark, Mali claimed that if the exchange rate were to reach 200 dinars per euro, salaries would effectively drop by more than 50 percent in euro terms. He cautioned that destabilizing the exchange rate could trigger high inflation.