Bosnia's FX reserves rise 9.6% y/y to EUR 3.5bn at end-Aug 2013

By bne IntelliNews October 4, 2013

Bosnia’s central bank gross foreign reserves increased 9.6% y/y to BAM 6.8bn (EUR 3.48bn) at end-August 2013, slowing from a 11.8% y/y rise the month before, central bank data showed. The end-August FX reserves equalled to 24.6% of the full-year GDP projection, according to IntelliNews calculations.

In monthly terms, gross foreign reserves went up 3.6% at end-August, speeding up from a 1.9% increase at end-July.

Investment in foreign securities climbed 34.3% y/y to BAM 4.6bn at end-August, cooling from the 51.9% growth the month before. Their share in the total c-bank FX reserves increased significantly over the past year, reaching 67% at end-August as compared to 55% a year earlier.

Deposits at non-resident banks remained in the red, shrinking 24.3% y/y to BAM 1.95bn at end-August despite improving from a 34.2% y/y contraction in July.

End-August’s net foreign reserves held by the central bank stood at BAM 6.82bn, also up 9.6% y/y and 3.6% m/m. Their growth, likewise, was slower that end-July's 11.8% y/y and 1.9% m/m increases.

The c-bank’s net FX reserves fully cover its monetary liabilities, which include cash in circulation as well as reserve deposits of commercial banks and other demand deposits with the central bank. Such a strong external position guarantees the stability of the currency board arrangement. The level of this coverage, however, declined to 106.6% at end-August, from 108.9% the year before.

Related Articles

World Bank loan aims to revitalise Republika Srpska's little-used railways

The World Bank said it is lending $51.3mn to Bosnia & Herzegovina’s smaller entity, Republika Srpska, ... more

Bosnia’s constitutional court allows policemen to keep their beards

The constitutional court of Bosnia & Herzegovina ruled on November 30 that a regulation obliging border policemen to shave their beards violates their ... more

Former Bosnian Croat military leader dies after taking poison in war crimes hearing

A former Bosnian Croat leader who has been sentenced to 20 years in jail by the war crimes tribunal at The Hague is reported to have died after ... more

Dismiss