Demand for foreign currencies has doubled in exchange offices in Bosnia and Herzegovina. Fearing the global crisis, citizens are massively converting convertible marks, most often into Swiss francs, euros and dollars. Economists advise that there is no effect of changing brands into euros, due to the fixed exchange rate.
Citizens mostly exchange convertible marks into Swiss francs, and then into euros and dollars. Demand is twice as high as before the war in Ukraine, says one of the owners of an exchange office in Banja Luka.
We are well connected, he states, and if some of the foreign currencies disappear, we will solve it in a few hours, so that the buyers get the requested foreign currency during the day. He did not want to be in front of the camera, nor did his colleagues, because, as they say, they work with money and do not want problems.
The Central Bank and the Association of Banks of Bosnia and Herzegovina are telling the citizens that there is no reason to fear and exchange convertible marks into foreign currencies.
“There is no real and justified reason to replace convertible marks with euros.” The exchange rate of the convertible mark against the euro is fixed. The domestic currency, monetary and banking system are stable and citizens have no reason to fear. ”
Berialav Kutle, President of the Association of Banks of BiH
“There are as many convertible marks (BAM) in circulation as there are euros, the Central Bank has reserves.” Every BAM on the BiH market is covered and every euro is covered by the stamp. It is impossible to change. ”
Economists view this phenomenon as a psychological domino effect in which, beyond all logic, the domestic currency changes into euros. The director of “SWOT” – says that the citizens have become insecure through the pandemic, and now the global crisis, and by buying foreign currency they want to protect.
Sasa Grabovev, Executive Director of the Association of Economists “SWOT”
“If citizens want to protect themselves from currency risk, it would be better to convert one part into another currency, the Swiss franc or the dollar.”
Our interlocutors do not recommend citizens to buy foreign currencies and keep large amounts of money in their homes. They warn that, in addition to paying unnecessary commissions, they are also exposed to the risk of theft.
