This morning, the Governor of the Central Bank of Bosnia and Herzegovina (CBBH), Senad Softić, Ph.D. opened the conference “The Economist: World in 2022” organized by Color Media Communications, in cooperation with the CBBH and with the support from the British Embassy in Bosnia and Herzegovina and the European Union Delegation in Bosnia and Herzegovina.
Opening the Conference, Governor Softić stressed that in the coming year there will be many challenges in various fields of human activity, highlighting the challenges facing the CBBH and the financial sector in BiH. and the economy as a whole.
The CBBH, as the Governor pointed out, has successfully upheld the principles of the Currency Board for almost 25 years, and the result is a stable national currency and constant growth in foreign exchange reserves. Even during the pandemic, which continues, the CBBH performed all its tasks correctly, and the very adherence to all the principles of the corona crisis meant that BH can count on the CBBH as a pillar of stability, not only of economy, but society as a whole ”, underlined Governor Softić.
Speaking of the challenges facing the CBBH and the financial sector as a whole, Governor Softić mentioned the main trends that may affect the stability of the financial system as a whole. Apart from negative interest rates, the first challenges are cryptocurrencies, which are numerous in the world, and in the future we can expect that they will be even more numerous, with a great variability of their values. price. Moreover, the challenge relates exclusively to digital banks, the “neobanks”, that is to say the commercial banks which do not have a physical seat, but operate virtually.
The new payment systems and FINTECH represent new technological solutions in payment transactions allowing payments between customers to be made at low cost, quickly and in real time and sometimes continuously 24/7. Advances in new payment technologies are expected to be particularly important for cross-border payments. Ultimately, as a challenge, the governor mentioned decentralized finance, including a level of technological development such as a transaction, for example, granting a loan from one person to another can be done without banking mediation.
He particularly underlined the need for a coordinated cooperation of all relevant institutions in BiH, believing that no single institution can open the door to the EU. However, all together, we can accomplish a lot on this path, in the general interest of all citizens.
“The future is still uncertain. We saw this during the 2007 global financial crisis and the current COVID pandemic. This does not mean that we have to be passive about the future. On the contrary, a large amount of uncertainty should make us more resilient to future shocks. Because, they will certainly take place. There is an old rule in economic policy: “Always think of good news as temporary and bad news as permanent”. This is not pessimism but reasonable prudence and better preparation for future challenges ”, concluded Governor Softić during his speech at the conference.
The vice-governor of the CBBH, Željko Marić, Ph.D. participated in the panel “Money never sleeps: new opportunities and challenges for the economies of Bosnia and Herzegovina and the region of Southern Europe. East “.
The “The world in…” conference was held in BiH for the first time this year, bringing together representatives of political, economic and social life, and diplomatic representatives in BiH, with the aim of providing, through a dialogue constructive analysis and views on the economic and political environment, the investment climate and the development of society as a whole. The first annual edition in Bosnia and Herzegovina of the prestigious British magazine “The Economist” was promoted on this occasion.