Presidency Adopts Annual Report of the Central Bank of BiH

(Patria) - The Central Bank (CB) of BiH welcomed the decision of the BiH Presidency and the adoption of the CB BiH Annual Report for 2025, which includes an overview of macroeconomic trends for the entire year, the Bank's operations, and financial statements certified by an external auditor.

Despite global and geopolitical challenges, 2025 was marked by stable results and strengthened institutional resilience, confirming the key role of the CB BiH in preserving monetary and financial stability, according to a statement from the CB BiH.

Moderate economic growth was recorded in Bosnia and Herzegovina, with weakening but still elevated inflationary pressures. The CB BiH continued to implement a stable monetary policy under the currency board regime.

Net foreign assets amounted to KM 1.65 billion, an increase of KM 293.6 million compared to the end of 2024. Net foreign exchange reserves at the end of 2025 amounted to KM 18.21 billion and increased by KM 573 million compared to the same period of the previous year, with full coverage of monetary liabilities by foreign exchange reserves. The coverage ratio of monetary liabilities by foreign exchange reserves was 110 percent.

The net profit of the CB BiH in 2025 amounted to KM 307,367,399.84 as a result of stable and responsible management, with a special emphasis on efficient management of foreign exchange reserves. Such an approach enables the preservation of stability while achieving safe and sustainable returns.

The mandatory reserve rate was maintained at 10 percent, while the growth of cash in circulation continued, partly influenced by tourism and related service activities.

At the same time, the CB BiH continued to improve the payment system, with activities focused on introducing the TIPS Clone instant payment system and joining the SEPA area.

The CB BiH also worked on aligning with international statistical and regulatory standards and duly performed its function as a fiscal agent, including the timely servicing of external debt.

Particular focus was placed on risk management, including climate and operational risks, and improving stress tests for the banking sector. Financial indicators indicate the stability of banks' liquidity.

During 2025, activities in the areas of sustainability and social responsibility were further strengthened, primarily financial education, inclusion, and gender equality.

The adoption of the Report confirms the credibility and professional work of the CB BiH, which remains committed to preserving monetary stability and further contributing to the country's economic development, the CB BiH statement added.