The Central Bank of BiH has been recording the largest amount of foreign currency reserves whose increase is determined by the real demand for domestic currency, as stated from this institution. However, despite the fact that foreign exchange reserves of BiH amount to more than 10 billion BAM, only 110 million EUR is currently in the vault of the Central Bank.
When it comes to the total foreign currency reserves of BiH, a total of 2,563 billion BAM is deposited on accounts of foreign banks, while the amount of 7,344 billion BAM is invested in foreign currency securities. The profit from these investments amounts to 12 million BAM.
To recall, foreign banks return money of our deposited foreign currency reserves to BiH and give it to our citizens as loans. Entities have paid around 290 million BAM on the basis of securities to those banks during the period of six years.
“Although the stability of prices and currencies has been determined as the main goal for years, at the expense of employment, I believe that we need to think whether this type of operation of our Central Bank serves to our or some other economies,” stated economic analyst Faruk Hadzic.
It was noted from the Central Bank of BiH that uncertain and negative market trends, as well as legal frameworks, made their influence on the process of management of foreign currency reserves and the amount of investment income, which is the reason why this institution is facing more and more difficult achievement of positive financial result.
According to this year’s financial report, the Central Bank of BiH earned a total of 2.8 million BAM in the three months of 2018, which is by 400,000 BAM more in comparison to the same period last year.
When it comes to the physical amount of foreign exchange reserves that the Central Bank of BiH owns in its vault, it was the largest before the World Economic Crisis in 2008 and it amounted to 212 million BAM. However, this amount was decreased over the years. Now, more than 95 % of foreign currency reserves of BiH are deposited abroad on foreign bank accounts or they are invested in securities of foreign governments.
(Source: Dz. L./Klix.ba)