BELGRADE, Oct 9 (Reuters) - Serbia's central bank said on Thursday it sold 30 million euros to slow declines in the dinar, the fourth time in the last five days it has acted to prop up the nation's currency.

The latest intervention after a day's pause pushed the dinar below 80 to the euro, which is considered a psychological barrier. Banks were pricing the dinar in a 79.55-79.65/euro range, up from its Wednesday's close at 80.2279/euro.

The dinar ended 2007 at 79.2362/euro.

'There were three waves of intervention, a total of 30 million euros, and the dinar strengthened,' a central bank source told Reuters.

The intervention took place in a day of record high trading volumes of 224 million euros in just three and a half hours.

Some dealers welcomed the intervention, but some complained, saying the bank's move was going against the currency's new downward trend. 'Obviously, the dinar is losing weight because banks are no longer extending index-linked credits and there is a strong client demand,' a senior dealer said.

The dinar started falling late last week as foreign investors dumped the currency in search for euro liquidity due to global financial turmoil. Fears from the global crisis prompted some Serbs into withdrawing their savings from banks, exerting more pressure on the currency.

Reporting by Gordana Filipovic