Central Bank of BiH successfully concluded 2018

(Patria) - The Central Bank of Bosnia and Herzegovina (CBBH) successfully conducted monetary policy in 2018 and maintained monetary stability in BiH in accordance with the Law on CBBH, thereby contributing to financial stability. The operations of the CBBH have been under constant pressure in recent years due to interest expenses from negative interest rates on deposits with foreign banks in the Eurozone and negative yields on government bonds of countries within our investment spectrum.

Despite the aforementioned, the CBBH still manages to achieve a positive financial result, although the primary goal in central banking is not profit generation but maintaining monetary stability. The positive performance in 2018 is a result of a rational management policy, and the CBBH achieved a net profit of 8,430,875.92 KM in 2018. The entire profit amount was allocated to general reserves as capital positions of the CBBH.

The financial statements and the Annual Report of the CBBH were adopted at the meeting of the Governing Council on March 27, 2019, and, in accordance with the Law on CBBH, were sent to the Parliamentary Assembly and the Presidency of BiH. The independent external auditor gave a positive opinion on the adopted financial statements of the CBBH. The CBBH, as an institution whose primary goals and tasks are to achieve and maintain the stability of the domestic currency under the currency board model, will continue its foreign exchange reserve investment policy where the priorities are monetary stability and portfolio security.