BUSINESS

The Monetary and Financial System in Bosnia and Herzegovina is stable

 

The monetary and thus financial system in Bosnia and Herzegovina is stable.

There are currently 5.5 billion BAM at the accounts of the Central Bank of Bosnia and Herzegovina (CBBH) deposited by commercial banks and their depositors. Of the above-stated amount,  2.7 billion BAM is a Reserve Requirement (RR), while 2.8 billion BAM represents a surplus above the RR. This clearly indicates that the country’s banking system has sufficient level of liquidity and there is currently no need for a further reduction in the RR rate.

The CBBH has a sufficient volume of convertible mark cash, as well as of the euro banknotes, which means that it can meet the needs of commercial banks to supply citizens and businesses. We would like to point out that in addition to this, commercial banks also have significant cash reserves at their disposal, which represents a guarantee of meeting all needs of the financial system.

The CBBH continuously monitors the situation and undertakes all necessary measures in accordance with its powers defined by The Law in order to protect monetary stability and the domestic currency.

 

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