Central Bank of BiH, in accordance with the Law on the Central Bank of BiH, puts into circulation and withdraws from circulation the domestic currency, which consists of notes and coins of BAM as legal currency, adhering strictly to the currency board rules defined by the Law on the CBBiH, as clarified in a statement from this institution.
“The Central Bank of BiH, in accordance with the Law on the Central Bank of BiH, is required to ensure a regular supply of banknotes and coins of BAM for putting into circulation and withdraw from circulation, at the request of commercial banks, including the replacement of banknotes and coins that have become unfit for circulation. These banknotes are withdrawn from circulation and replaced by new banknotes and coins through commercial banks, and implementation requires commercial banks to download cash BAM from the vault of the Central Bank of BiH in accordance with the law and regulations of the Central Bank of BiH,” as noted in the statement.
Banknotes of BAM, as every other banknote, have their lifetime, because they suffer damage from everyday use. On an annual basis is withdrawn from circulation and destroyed about 20% of BAM banknotes that are unfit for circulation, and such banknotes are being replaced by new banknotes. Moreover, we should take into account the continuous increase of cash BAM in circulation due to the demand for BAM by commercial banks, which is about 10% every year. When it comes to coins, for them is characteristic continuous increase in demand, particularly for small coins.
“The current contracts for production and delivery of banknotes and coins of BAM were concluded in 2016, exclusively for the purpose of regular supply of banknotes and coins of BAM in accordance with needs for cash circulation for a longer period. The production of additional quantities of banknotes and coins of this type is carried out by Central Bank of BiH from its inception to the present day, and its production is a precondition for the regular supply of cash BAM. Information on the management of cash and detailed information on quantities in circulation are available to the public through regular monthly and annual reports of the Central Bank of BiH which are published on the website of the CBBiH,” as added from the CBBiH.
Central Bank of BiH will, after completion of the production process, make a decision on successive release of BAM banknotes and coins into circulation and published in the Official Gazette and the Official Gazettes of the Entities and Brcko District.
“Thus, the printing of banknotes and coins of BAM for these contracts cannot be brought into any connection with the allegations of some media, according to which the creation of new quantities of banknotes and coins of BAM is done for the purpose of their issue without coverage, which would constitute a violation of the Central bank of BiH and the rules of the currency board,” as said at the end from the CBBiH.
(Source: klix.ba)
