600 million BAM of Profit serves to the CBBiH to maintain the Convertibility of the Domestic Currency

August 17, 2017 10:45 AM

The Central Bank of BiH is marking the 20th anniversary of its work. Governor Senad Softic stated that our country has a stable monetary policy for two decades now and that it should not be changed.

“Our primary goal is that we have a fixed exchange rate of our domestic currency, i.e. BAM, according to EUR. Taking into account the historical context, the economic development of our country, as well as everyday occasions, we believe that this model is the most suitable for our conditions and that our monetary policy should not be changed,” stated Softic.

Asked about the reserves of the Central Bank of BiH in the amount of about 600 million BAM, the Governor noted that this is not surplus money, but the accumulated profit that this institution achieved over the past 20 years.

“The only role and function of this accumulated profit is to maintain the convertibility and stability of the domestic currency in relation to EUR. This accumulated profit creates enough space to amortize possible negative consequences even on a longer period of time,” explained Softic.

BiH is recording steady growth of GDP over the past three years, and the latest data from the Agency for Statistics of BiH say that it is currently 4, 59 %.

“Taking everything into account, we have a relatively stable economic situation,” said Governor of the Central Bank of BiH.

Talking about the allocations that diaspora is sending to BiH, he noted that they represent significant funds and a continuous inflow to our country.

“If we consider the period of the last 10 years, these allocations amount to about 20 billion BAM. The share of these allocations in GDP is between 13 and 15 %, which is not a negligible percentage. However, these funds are not focused on investments, which would be good. They only increase the standard of living,” stated Softic, and added that he believes that the funds from diaspora will not decrease in the following years.

(Source: biznisinfo.ba)

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