Reduction in credit growth for government institutions, CB BiH foreign exchange reserves down 1.4 percent at the end of June

(Patria) - The total money supply (M2) at the end of June 2023 amounted to 34.05 billion KM, with an increase in the money supply of 269.6 million KM (0.8%) recorded compared to the previous month. The increase in the money supply (M2) in June 2023 resulted from an increase in money (M1) by 248.9 million KM (1.2%) and quasi-money (QM) by 20.7 million KM (0.2%).

Cash outside banks increased by 89.6 million KM (1.5%), and transferable deposits in domestic currency by 159.3 million KM (1.1%), resulting in an increase in money (M1).

Quasi-money (QM) increased due to a rise in other deposits in domestic currency by 38.9 million KM (1.4%) and other deposits in foreign currency by 18.5 million KM (0.3%), while transferable deposits in foreign currency decreased by 36.8 million KM (0.9%).

On an annual basis, the increase in the money supply (M2) in June 2023 amounted to 2.54 billion KM (8.1%). Growth was recorded in cash outside banks by 397.8 million KM (6.8%), transferable deposits in domestic currency by 1.53 billion KM (12.2%), and transferable deposits in foreign currency by 685.7 million KM (21.4%), with a simultaneous decrease in other deposits in domestic currency by 52.9 million KM (1.8%) and other deposits in foreign currency by 17.3 million KM (0.2%).

Total loans to domestic sectors at the end of June 2023 amounted to 22.73 billion KM, with an increase of 303.9 million KM (1.4%) recorded compared to the previous month. Credit growth was recorded in the household sector by 138.1 million KM (1.2%), private enterprises by 147.2 million KM (1.6%), non-financial public enterprises by 20.8 million KM (3.6%), and other domestic sectors by 26.3 million KM (14.4%).

A reduction in credit growth was recorded for government institutions by 28.4 million KM (2.7%). The annual credit growth rate in June 2023 was 4.7%, or 1.01 billion KM nominally. Annual credit growth was recorded in the household sector by 614.2 million KM (5.7%), private
enterprises by 307.2 million KM (3.3%), non-financial public enterprises by 108.7 million KM (22.3%), and other domestic sectors by 30.8 million KM (17.3%). A reduction in credit growth on an annual basis was recorded for government institutions by 50.3 million KM (4.6%).

Foreign exchange reserves of the Central Bank of BiH at the end of June 2023 amounted to 15.32 billion KM. Compared to the previous month, a decrease in foreign exchange reserves of 210.1 million KM (1.4%) was recorded, while on an annual basis, the foreign exchange reserves of the Central Bank of BiH are lower by 579.6 million KM (3.6%).

Compared to the previous month, the bulk of the change relates to an increase in investments in securities by 118.9 million KM (1.8%) and a decrease in deposits with non-resident banks by 323.2 million KM (4.0%).