Bosnia and Herzegovina’s Foreign Exchange Reserves Rise to BAM 15.87 Billion
The Central Bank of Bosnia and Herzegovina (CBBH) has announced that the country’s foreign exchange reserves reached BAM 15.87 billion at the end of April 2023. This represents a significant increase compared to the end of March, when reserves stood at BAM 15.5 billion. The growth in reserves is attributed to several factors, including: *
Increased export revenue:
Bosnia and Herzegovina has seen a rise in exports, particularly in the manufacturing and agricultural sectors. *
Higher tourism income:
The country has experienced a surge in tourist arrivals, leading to increased foreign currency earnings. *
Foreign direct investment:
Bosnia and Herzegovina has attracted foreign direct investment in various industries, including energy, infrastructure, and tourism. *
Remittances from abroad:
Bosnian citizens living abroad have sent significant remittances back to the country, boosting foreign exchange reserves. The high level of foreign exchange reserves provides a buffer against potential economic shocks and supports the stability of the Bosnian currency, the mark. It also enhances the country’s creditworthiness and ability to repay its external debts. The CBBH maintains a prudent approach to foreign exchange reserve management, seeking to balance the need for reserves with the potential returns on investments. The bank actively monitors economic developments both domestically and globally to ensure the adequacy of foreign exchange reserves. Bosnia and Herzegovina’s foreign exchange reserves are currently at a record high, providing a solid foundation for the country’s economic stability and growth prospects.The Central Bank of Bosnia and Herzegovina (CBBiH) reported that the country’s foreign exchange reserves amounted to 15.87 billion Bosnian Marks (BAM) at the end of April 2023. This represents an increase of 541.6 million BAM (3.5%) compared to the same period last year.The Central Bank of Bosnia and Herzegovina (CBBiH) reported that the country’s foreign exchange reserves amounted to 15.87 billion Bosnian Marks (BAM) at the end of April 2023. This represents an increase of 541.6 million BAM (3.5%) compared to the same period last year. Total loans to domestic sectors reached 24.27 billion BAM at the end of April, an increase of 224.8 million BAM (0.9%) compared to the previous month. Credit growth was observed in the household sector (113.3 million BAM) and private companies (139 million BAM). However, there was a decline in credit growth in non-financial public companies (17.8 million BAM), government institutions (7.8 million BAM), and other domestic sectors (1.8 million BAM). The annual growth rate of total loans in April was 8.4%, equivalent to 1.88 billion BAM. Annual growth was recorded in the household sector (938.4 million BAM), private enterprises (863.7 million BAM), government institutions (23.2 million BAM), and other domestic sectors (85.2 million BAM). Non-financial public companies experienced an annual decline in credit growth of 25.6 million BAM (4.2%). Total deposits from domestic sectors reached 31.92 billion BAM at the end of April, an increase of 133.2 million BAM (0.4%) compared to the previous month. The annual growth rate of total deposits in April was 8.5%, or 2.51 billion BAM.The Central Bank of Bosnia and Herzegovina (CBBH) announced that the country’s foreign exchange reserves reached BAM 15.87 billion at the end of April 2023. This represents a significant increase compared to the previous month, when reserves stood at BAM 15.63 billion. The CBBH attributed the rise in foreign exchange reserves to several factors, including increased foreign direct investment, positive trade balance, and remittances from Bosnian citizens living abroad. The central bank also noted that it has been actively purchasing foreign currencies in the market to support the stability of the Bosnian mark (BAM). The increase in foreign exchange reserves is seen as a positive development for the Bosnian economy, as it provides a buffer against external shocks and helps maintain the stability of the BAM. It also indicates that the country is attracting foreign capital and that the economy is performing relatively well. The CBBH stated that it will continue to monitor the situation closely and take appropriate measures to ensure the stability of the financial system and the Bosnian economy.
