Serbia’s central bank has temporarily abolished commissions charged by exchange offices on euro sales to citizens, saying the move is aimed at protecting consumers and preventing unjustified panic in the foreign exchange market.

The National Bank of Serbia (NBS) said on December 16 that its executive board adopted the measure after analysing recent market developments, which showed the dinar remained stable against the euro and that banks had not widened their buying and selling spreads.

The decision follows the appearance of exchange rates of around 120 dinars to the euro on the boards of some exchange offices — levels that were later shared on social media and in parts of the media, fuelling public concern.

The NBS said such rates were not based on market movements but could only arise if an exchange office simultaneously applied the maximum permitted deviation of the selling rate from the mid-rate of 1.25% and the maximum legally allowed commission of 1%.

“By abolishing the possibility of charging a commission, there will no longer be a basis for selling rates to appear on exchange boards or in public spaces that may have a disturbing and misleading psychological effect on citizens,” the central bank said, adding that rates of 120 dinars per euro would no longer be possible to display.

Earlier this month, the NBS sought to calm markets after a rush by citizens to buy euros — driven by fears over US sanctions on Russian-owned oil company NIS — caused temporary shortages at some exchange offices and pushed the dinar to its weakest level this year.

The central bank said on December 8 that it had intervened by selling euros from its reserves after demand for foreign cash jumped well above normal seasonal levels. The surge followed media reports and online speculation about the potential collapse of NIS.

NIS has struggled to secure crude since October 9, when US sanctions halted deliveries via Croatia’s JANAF pipeline. Serbia’s only refinery, in the town of Pančevo, began shutting down operations on December 2 due to a lack of crude, though the company said it has continued supplying the domestic market from existing stocks.

The NBS said the public’s euro buying was fuelled by “irrational” panic, adding that the financial system remained stable and that banks had sufficient foreign currency. Local shortages at exchange offices reflected distribution issues rather than a lack of euros in the system, it said.

The dinar slid to 117.4155 to the euro on December 3 — its weakest level this year — after President Aleksandar Vucic confirmed Serbia had not obtained a US waiver allowing crude imports for NIS. The currency has since stabilised around 117.37.

The commission ban has no fixed end date and will remain in force as long as market conditions require it, the NBS said, adding it would lift the measure once full stabilisation is achieved.

The central bank also warned it would not allow isolated cases or social media reporting to create a “false picture” of the foreign exchange market or to trigger panic at the expense of citizens and Serbia’s financial stability.