In addition to challenging circumstances and global economic and financial activities due to the war in Ukraine and a significant increase in interest rates on international financial markets, the Central Bank of Bosnia and Herzegovina (BiH) in 2022 enabled the stability of the domestic currency, giving stability to the financial market in BiH.
Foreign exchange reserves were managed based on the principles of safety and profitability, which successfully maintained monetary stability. The change in the situation on the international markets brought with it a higher return based on the investment of foreign exchange reserves, and the Central Bank of BiH achieved a net profit in the amount of 25.9 million BAM at the end of 2022, according to the Annual Report of the Central Bank of BiH.
The report states that the Central Bank of BiH reacted in a timely manner on the international financial market in the circumstances of a significant increase in interest rates and that the restructuring of the investment portfolio reduced the negative effects of the increase in interest rates on the value of foreign exchange reserves while ensuring the continuity of an adequate increase in monetary passive foreign exchange reserves, Biznis Info reports.
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