Softić for NAP: Domestic currency stable, sufficient quantities of cash secured

SARAJEVO, (Patria) - The economic measures of the FBiH Government will soon be considered at a session, and the coronavirus pandemic is bringing the business sector to its knees. Serious financial capacities are being demanded from the authorities, and it is a legitimate question whether Bosnia and Herzegovina is capable of responding to these demands, and to what extent.

The Central Bank of Bosnia and Herzegovina issued a statement that the financial and banking system in BiH is currently stable and liquid, as shown by the amount of funds held above what the CB prescribes with the reserve requirement rate.

“So there are currently no reasons for the CBBiH to change the reserve requirement rate. We are working completely professionally and responsibly, aware of the current situation. Payment transactions within the country and abroad are proceeding smoothly, the domestic currency is stable, and sufficient quantities of cash have been secured. It is advisable to also use other forms of non-cash payment (card payments),” says Senad Softić, Governor of the Central Bank of BiH, for the Patria News Agency.

He further emphasizes that they are in constant contact with the Presidency of BiH, which is informed of all positions of the Central Bank of BiH, and that it is necessary for everyone to be united and on the side of citizens at this time, without quarrels, and that experts from various fields should be listened to.

The accounts of the Central Bank of Bosnia and Herzegovina (CBBiH) currently hold 5.5 billion KM deposited by commercial banks and their depositors. Of this, 2.7 billion KM is the required reserve, while 2.8 billion KM represents the surplus above the required reserve. This clearly indicates that the banking system in the country is liquid.

“The Central Bank is monitoring the situation and taking all necessary measures in accordance with its powers defined by law to protect monetary stability and the domestic currency,” added Softić.