Kozarić: BiH Central Bank reserves are not for investments, and financial stability would be jeopardized

The idea of withdrawing funds from the reserves of the Central Bank of BiH, put forward by RS President Milorad Dodik and joined by BiH Presidency member Bakir Izetbegović, has been condemned by numerous economic experts, writes the BiH news agency Patria.

Izetbegović stated that this money, around 700 million KM, could be used for the economy instead of taking on debt. However, experts are clear that withdrawing CBBiH reserves is not possible.

Former Governor of the CBBiH and current Dean of the Faculty of Economics in Sarajevo, Kemal Kozarić, told the Patria news agency that he is against putting this money into circulation.

- This money is not for investments and would have short-term effects, while jeopardizing currency stability in the long run. Financial stability would be threatened, and confidence in the domestic currency would be called into question, given that 50 percent of domestic savings are in KM. Ultimately, the Law on CBBiH does not allow it - Kozarić said.