Why Dinar Savings Lead the Way: Higher Returns and Stability
Dinar savings in Serbia have seen remarkable growth in recent years, reflecting financial stability and favorable macroeconomic conditions. With increasing returns compared to foreign currency savings, many individuals and businesses are reconsidering their financial strategies. This article examines the latest trends in dinar savings and how Confida can help navigate this evolving landscape.
Growth of Dinar Savings
At the end of 2024, dinar savings reached 191.2 billion dinars, an 18.7% increase in the second half of the year. Over the past twelve years, savings in local currency have grown nearly elevenfold, now comprising 9.6% of total savings, up from 1.87% in 2012.
Higher Returns Compared to Foreign Currency Savings
Analysis shows dinar savings have consistently outperformed foreign currency savings. A depositor investing 100,000 dinars in 2012 and renewing annually would have earned 48,000 dinars more than someone investing the same amount in euros. In over 98% of observed periods, one-year dinar deposits were more profitable than euro savings of the same maturity.
Savings Structure and Trends
In 2024, the most significant increase was in six-to-twelve-month deposits, accounting for 53.7% of total dinar savings. Meanwhile, foreign currency savings also grew, doubling since 2012, though short-term dinar deposits remained more lucrative.
Inflation and Exchange Rate Stability
Monetary policies have effectively stabilized inflation, which dropped to 4.3% by December 2024. The dinar’s exchange rate against the euro remained steady, with foreign exchange reserves rising to 29.3 billion euros, covering over seven months of imports.
Confida’s Role in Strategic Financial Planning
In a changing financial environment, Confida provides expert advisory services in corporate finance, tax optimization, and investment planning. By leveraging market insights, Confida helps businesses and individuals optimize financial decisions, ensuring sustainable growth and long-term financial stability.
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