Today, 24 years ago, the Central Bank of Bosnia and Herzegovina (CBBH) began operations. According to the Constitution of Bosnia and Herzegovina, this institution is solely responsible for the issuance of currency and monetary policy in the whole of BiH. According to the CBBH Law, the objective of the Central Bank is to achieve and maintain the stability of the local currency, the convertible mark, by issuing the local currency under the arrangement known as the currency board., is stated in the press release.
Since its establishment to date, the CBBH has successfully overcome many challenges, from the introduction of the single currency BH, the reform of the payment system, the reform of the banking sector, the replacement of the DEM by the EUR and its relationship with the KM through a fixed exchange rate, the financial crisis in 2008/2009, implementation of projects with the European Central Bank (ECB) and the central banks of the Eurosystem, until the introduction of European standards central bank in the operations of this institution. A particular challenge was met during the COVID-19 pandemic.
Yet the commitment to work and development, the pursuit of excellence in work always brings good results and praise is received every day. The most recent arrived from Brussels through the European Commission (EC) and the European Central Bank (ECB).
“The achievement of full convertibility of the local currency has proceeded without any turbulence, which is particularly important in a complex institutional environment in BiH, it is therefore recommended to continue this practice and to ensure the full independence of the CBBH. », He was stressed. by the ECB in its annual assessment of monetary policy and financial stability.
In addition, the ECB stresses that the adoption of the BiH deposit insurance law is important to strengthen the regulatory banking system.
The European Commission also welcomed the activities of the CBBH in the field of statistics and the progress made in government finance statistics, as since October 2020 an important step has been taken by providing data to Eurostat. Improvements were also made in the timeliness and consistency of quarterly data submitted in the area of balance of payments and international investment position statistics.
The successful work is confirmed by international recognitions, including that awarded to the CBBH by the magazine Capital Finance International for the best central bank governance in Central and Eastern Europe in 2017. This magazine recognized the modalities by which the CBBH contributed to the continued stability of the country during the years of its operations.
The stability of the KM is a fundamental task of the CBBH without which other economic values could be called into question. The CBBH also manages official foreign exchange reserves obtained through the issuance of local currency, assists and maintains appropriate payment and settlement systems, coordinates the activities of bank branches of BH entities which are responsible for issuing licenses to ‘operating and supervising banks.
While some results relate to the contribution to EU integrations and specific reports to the European Commission (EC) and the Directorate for European Integration, others signify completed upgrading and upgrading processes. in service of the single register of accounts of commercial entities in BiH, the upgrading and commissioning of the clearing of modernized postal checks, the upgrading of the central register of credits of commercial entities and natural persons in BiH, and harmonization of statistics with EU requirements. A new methodology and tools for stress testing have been developed within the FINRA project and the IT infrastructure has been improved. External debt service was regular, CBBH foreign exchange reserves were successfully invested with improvements to this process at the operational level.
The existence of CBBH payment systems for 20 years confirms that our country’s systems can operate to the highest standards in the world and that there is no excuse for deviating from excellence. The story of the convertible brand is a credible argument that there is something good that connects us. We all love the convertible brand as well because we can trust it. The Central Bank of Bosnia and Herzegovina and the convertible mark have never failed us.