The CBBH Governing Board Meeting Held 3/29/2017 Tweet March 29, 2017 At the meeting held on 29th March 2017 in Sarajevo, the Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH) adopted the Financial Statements of the CBBH for the year ended on 31st December 2016, and the Decision on the allocation of net profit which the CBBH has earned in 2016. Net profit of the CBBH for 2016 amounts to KM 14,062,357.63. Out of that amount, in accordance with Article 27 of the CBBH Law, there will be allocated 60% or the amount of KM 8,437,414.58 on the liabilities account towards the budget of institutions of Bosnia and Herzegovina, while 40% or KM 5,624,943.05 is allocated to the general reserves of the CBBH. Although operating in unfavorable conditions for investments that have been present at the international markets since 2014, the CBBH achieved a positive financial result in 2016. It is expected that the negative trends at the international financial markets could be continued in the coming years as well. During the observed period, the CBBH has been continuously adapted to the changed rates of return and interest rates at the financial market instruments denominated in EUR. Since the available forecasts and expectations of developments in interest rates and profits, and changes of the gold prices and the dollar’s exchange rate, indicates that the recovery in the euro area will be slow and uneven, it is expected that the current structure of foreign exchange reserves portfolio in the upcoming years will generate a significantly lower level of annual interest of foreign currency income, and therefore significantly lower level of total income of the CBBH, which, in the management of foreign exchange reserves, in accordance with the Law, must primarily be governed by the principle of security of investing reserves, investing in low-risk financial instruments. The CBBH, with its work, has ensured continuity of monetary stability, realizing the main goal - stability of the local currency. During the past years, in its operations the CBBH was guided by the principles of effective business, applying the European and international standards, with the rationalization of operating costs. Taking into consideration the conditions in which it operates, the CBBH will continue with the rationalization and reduction of operating costs in the future.
