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.
Bosnia & Herzegovina has formally joined the Transport Community, unlocking more than €250mn EU funding for projects in the country. The European Union and five Western Balkan partners ... more
Standard & Poor’s has affirmed Bosnia & Herzegovina’s B/B foreign and local currency ratings and its stable outlook, but warned that divisive politics are delaying ... more
The second of Bosnia & Herzegovina's two bourses - the Sarajevo Stock Exchange (SASE) - has enabled trading of securities on the markets of Southeast Europe, becoming an active member of the SEE ... more