interchange rate to be applied in the dinacard system will be 0. 7 per cent of the purchase value for majority of trades people ( and 0. 25 % for petrol ) which shall be a temporary measure pending comprehensive agreement among banks to apply to all bank cards issued in serbia. i wish to conclude by reminding you that the nbs has recently, through the national centre for payment cards, also become a member of the berlin group, one of the initiatives for linking national card systems in europe in line with the sepa initiative. this was a necessary step to prepare us for joining european integrations in the area of card business for which purpose the nbs shall continue to monitor closely the development of regulatory bodies worldwide and shall undertake all measures needed.

radovan jelasic : the development of payment cards in serbia speech by mr radovan jelasic, governor of the national bank of serbia, in the serbian chamber of commerce on the occasion of the annual meeting dedicated to payment cards, belgrade, 8 june 2007. * * * ladies and gentlemen, it is a pleasure for me to greet you on behalf of the national bank of serbia on the occasion of annual meeting of the chamber of commerce of serbia dedicated to the development of payment cards business. before discussing the topic of the meeting itself, allow me to point out three details related to the general economic situation in the country which very much affect the progress of card business in serbia. • very many people, i may even say, most people, including myself, do not and can not remember the times when inflation in serbia was lower than it is today. the reason is very simple, they were not born yet! the rate of inflation which is lower than the currently prevailing 4. 4 per cent, and 3 per cent for core inflation, was last recorded, would you believe it, 44 years ago, that is in 1963. i am convinced that the current low inflation rate will help the development of card business and make it cheaper and more attractive because expansion of the network actually represents the highest fixed cost element. • i am honoured to be the first governor in a number of decades who can spend his day in office without even having to mention the word “ exchange rate ”. since monday this week when regular daily exchange rate fixing was abolished, the nbs dived with full force into the waters of managed floating exchange rate with the emphasis on “ floating ” rather than on “ managed ”. those not happy with the exchange rate for the dinar will have to submit their complaints to the market and not to the nbs, and the other way around, those happy with the exchange rate will have to give their thanks to the market. • as negotiations related to stabilization and association with the eu continue, in addition to the money from brussels, numerous foreign investments, and hopefully a better credit rating, serbia will get one more thing, which i think is the most important one, and that is a chance to show and prove who and what it really is and what it has done so far in terms of attempts at reform. if the politics represent a stumbling block, you are never given a chance to present or prove for what you are worth! the results achieved in the domain of development of