The Monetary and Financial System in Bosnia and Herzegovina is stable

The Monetary and Financial System in Bosnia and Herzegovina is stable

The monetary and as an extend the financial system in Bosnia and Herzegovina is stable, the Central Bank of BiH announced.

“There are currently bam 5.5 billion (EUR 2.8 billion) at the accounts of the Central Bank of Bosnia and Herzegovina (CBBH) deposited by commercial banks and their depositors. Of the above stated amount, BAM 2.7 billion (EUR 1.38 billion) is a Reserve Requirement (RR), while BAM 2.8 billion (EUR 1.43 billion) 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”, says CBBH in a statement.

The CBBH has a sufficient volume of convertible mark cash, as well as of 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”, reads the statement.

The CBBH continuously monitors the situation and takes all necessary measures in accordance with its powers defined by the law, in order to protect monetary stability and the domestic currency./ibna