20 years of CBBiH: Its stability and credibility unquestionable

An international conference "20 years of stability of the Central Bank of Bosnia and Herzegovina" is being held in Sarajevo, and numerous guests were addressed by the Governor of CBBiH Senad Softić, reports the Patria agency.

He pointed out that Bosnia and Herzegovina established the Central Bank in 1997, with the main goal of achieving and maintaining the stability of the domestic currency (the convertible mark). Today, CBBiH has a network of organizational units in Sarajevo, Mostar, Banja Luka, Brčko, and Pale.

- The International Monetary Fund played a key role in establishing the Central Bank, and we expect this support to continue, especially in activities to strengthen the banking system in Bosnia and Herzegovina.

Softić said that CBBiH will continue to align with EU standards, modernize and improve its operations, payment systems, and treasury operations.

- CBBiH is a completely independent, credible, transparent central bank that represents the anchor of macroeconomic stability in the country - said Governor Softić.

Mladen Ivanić, Chairman of the Presidency of Bosnia and Herzegovina, said that the most important thing the Central Bank of Bosnia and Herzegovina has done in the past 20 years is to build trust in the domestic currency.

- Its stability and credibility are completely unquestionable. This is the result of what has been done through the work of the currency board, but also through the practical policy that was conducted in the Central Bank. It is sometimes not bad that governments and politicians do not have too much influence on policy.

Ivanić said that if a more classical form of CBBiH were to be approached, very quickly, under conditions of real deficits in the public sector, there would be excesses, entering a cycle of inflation and a phase of complete instability and distrust in the currency of Bosnia and Herzegovina.

- Nothing should be changed in this area, and I have opposed and will oppose all attempts to change policy in this area. For such a thing, the political structures in Bosnia and Herzegovina are not mature, and very quickly, out of short-term interests, they would reach for things that would produce instability.

The banking sector represents one of the stable pillars of the economy.

Prime Minister of Bosnia and Herzegovina Denis Zvizdić said that CBBiH is one of the most important and strongest institutions in the country, enjoying both domestic and international reputation.

- It represents a true pillar of monetary stability in Bosnia and Herzegovina. In a very complex political environment within a very complex constitutional political system of Bosnia and Herzegovina, CBBiH is an institution that has managed to maintain the stability of its operations all these years. Peace and stability are the most important words for both Bosnia and Herzegovina and the region.

Zvizdić said that in October, the Law on Deposit Insurance will be adopted, which will round off the package of reforms within the banking sector and align it with international standards.

- Bosnia and Herzegovina's membership in the EU is a priority that remains the focus of our actions and all our activities. In such a process, CBBiH is significant. The support of the Council of Ministers of Bosnia and Herzegovina is completely unquestionable and will remain so. CBBiH was among the first to timely and professionally submit all requested answers to the EC Questionnaire. At this moment, Bosnia and Herzegovina is working on finalizing and inter-institutionalizing the preparation of unified responses on behalf of Bosnia and Herzegovina in accordance with procedures, including the coordination system.

Zvizdić said that there are attempts to take over the constitutional competencies of CBBiH, or to distribute its profit, or to print money uncontrollably.

- That will not happen, and CBBiH will retain its independence - concluded Zvizdić.