Governor of the Central Bank of Bosnia and Herzegovina, Jasmina Selimović, said in Vienna that inflation in Bosnia and Herzegovina was four percent last year, while the Bank’s projections indicate that it will slow down below three percent this year.
Participating in the Forum for Central and Eastern Europe organized by the “Financial Times”, Selimović said that interest rates in BiH, within the framework of the currency board arrangement, are formed through the transfer of external financial conditions.
She added that, thanks to strong liquidity and a stable banking sector, greater volatility was avoided during the period of global monetary tightening.
“Regarding green financing and the challenges it currently faces, which slow down its development and limit its contribution to sustainable investments, she emphasized that this sector requires measures for its reactivation,” the Central Bank announced.
Although primarily aimed at preserving macroeconomic and financial stability, monetary policy, Selimović added, can significantly contribute to the development of green financing through favorable financial conditions, stable liquidity and reduced uncertainty.
Bearing in mind the fact that the integration of climate-related risks into the supervision of banks is a developing process, and that monetary stability is a key support for long-term sustainable investments, Selimović said that the Central Bank has contracted a large and significant technical assistance program with the European Investment Bank.
According to her, in this program the Central Bank will act as a coordinator of activities among all relevant institutions with the aim of integrating climate risks into the financial system of BiH.
Selimović pointed to the strong support of the European Commission and the European Central Bank for the independence of the Central Bank, and highlighted the activities in the process of BiH’s accession to the Single Payment Area in Euros /SEPA/.
She reminded that the pre-application was submitted in December last year, and stated that BiH is ready for the next stages of the SEPA process, bearing in mind the fact that both entity governments have adopted the necessary laws.
According to her, the formal application is expected in the first quarter, with the aim of enabling faster, safer and cheaper euro payments.
In the part of the panel discussion on digital currencies, Selimović emphasized that the Central Bank takes a cautious and analytical approach, with active monitoring of European and international initiatives, reports Srna.
