Why does Milorad Dodik keep attacking Central Bank of BiH?

By: prof dr Dzenan Djonlagic

The latest statement by Milorad Dodik in which he suggests to bring back the Central Bank BiH (CBBiH) to the entity level as a joint institution, indicates start of a 'hunt' on CBBiH as the last pillar of financial stability of the country and its domestic currency - KM. Why? So that the entity budget could be fed from this state monetary institution. This is a genuine proof that the RS entity budget has dried up!

There are other mean messages between the lines.

CBBiH is not a joint institution, it is a state institution of BiH. Secondly, Dodik wants to divide CBBiH into entity branches! Finally, there is an ill intention to hit at the most successful and most stable finance institution in the country – to destabilize it so that the entity budget could get hold of CBBiH funds.  

That is not going to work! According to the BiH Constitution, monetary politics is the core responsibility of the state Bosnia and Herzegovina. The entities cannot interfere with the work of CBBiH. Officials from the two entities do not have any decision making authority as regards issues relating to the monetary politics. The Central Bank BiH is entirely independent of both BH entities as well as any other entities' legislative and executive bodies.