Bosnian Central Bank manages the Foreign Exchange Reserves in a Way that ensures the Liquidity and Security


The Central Bank of Bosnia and Herzegovina (CBBH) informs the public that, even in the circumstances of the declared state of natural and other disasters in BH, it continuously carries out its most important activities in order to preserve monetary stability and help maintain financial stability in Bosnia and Herzegovina.

The bank presented an overview of the performed activities in March, during which the work was carried out in extraordinary circumstances most of the time.

In order to preserve the continuity of business processes and to protect the employees performing the key operations, the Bank, following the instructions of the relevant institutions, has provided the maximum possible protection at work while adapting business processes to the new situation.

In the current extremely turbulent conditions in the global financial markets, the CBBH manages the foreign exchange reserves in a way that ensures the liquidity and security of the foreign exchange reserves portfolio. In accordance with the legal restrictions and other rules that regulate the management of the foreign exchange reserves, investments are made in the first-class securities of the EMU member states and deposits with central and commercial banks with the highest credit rating.

The CBBH continuously fulfills all the requirements of commercial banks for withdrawing cash from the Central Bank vault, thus providing commercial banks with sufficient quantities of cash to meet the needs of citizens and businesses in Bosnia and Herzegovina. In addition, it should be taken into account that the commercial banks in Bosnia and Herzegovina are holding significant amounts of cash, which further ensures the satisfaction of all the needs of the financial system as a whole.

In accordance with the declared state of natural and other disasters in Bosnia and Herzegovina and for the purpose of health protection of all participants in cash operations, since March 26, 2020, the CBBH has introduced special measures related to the implementation of the Decision on the procedure for handing over / taking cash in the CBBH vaults, which was notified to all commercial banks, entity banking agencies and the Association of Banks in Bosnia and Herzegovina. These measures have been introduced for the purpose of health care of all participants in cash operations.

Payment and clearing systems for interbank payments, Real-time Gross Settlement (RTGS) and Giro Clearing, owned and operated by the CBBH, have been functioning properly in accordance with the applicable working hours / schedule. The system availability was 100%. During March, the total of 3,429,904 transactions were performed, with the total value of KM 8,439,585,736.33, of which 89,986 transactions through RTGS with the total value of KM 6,967,561,952.61 and 3,339,918 transactions of giro clearing with the total value of 1,472,023,783.72.

The registries managed by the CBBH – Registry of Accounts of Business Entities and the Central Credit Registry, have been operating regularly.

As a fiscal agent of the state, according to the Bosnia and Herzegovina External Debt Servicing Plan and the orders by the Bosnia and Herzegovina Ministry of Finance and Treasury, the CBBH executed all external debt servicing orders in a timely manner in March. The function of the Fiscal Agent for Bosnia Herzegovina’s Membership with the International Monetary Fund (IMF) and the function of the depositary for the members of the World Bank (WB), as well as the coordinator for the sovereign credit rating of Bosnia and Herzegovina, were carried out regularly and without delay.

As an agent for banking and fiscal services, the CBBH has, by order of its depositors (Bosnia and Herzegovina Ministry of Finance and Treasury, Indirect Taxation Authority, BH Deposit Insurance Agency, Federal Ministry of Finance, registries of securities, Banking Agency of the Federation of Bosnia and Herzegovina), and in accordance with the contracts, performed foreign and domestic payment operations within the deadline. The CBBH works in standard working hours for these types of operations and is fully aligned with the operations of the correspondent foreign banks and the payment systems operations.

At the end of March, at the request of the Ministry of Finance and Treasury of Bosnia and Herzegovina, an account has been opened with the CBBH for donations to combat the COVID-19 virus – Ministry of Security of Bosnia and Herzegovina, in a foreign currency and KM, and instructions for payment of donations have been submitted, so payments are already carried out in the opened accounts.

The CBBH continuously supports the functioning of the financial instruments markets in the Republika Srpska and the Federation of Bosnia and Herzegovina through the electronic banking platform used on a daily basis by the Republika Srpska Central Securities Registry and the Federation of Bosnia and Herzegovina Securities Registry.

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