Governor Softić in Washington: Successful cooperation of CBBH and IMF

Governor of the Central Bank of Bosnia and Herzegovina (CBBH), Senad Softić, Ph.D. as a member of the delegation of Bosnia and Herzegovina, is in Washington where he is attending the Spring Session of the International Monetary Fund (IMF) and the World Bank Group (WB).

As part of the stay, during which a series of meetings with high-ranking officials of the IMF and the World Bank were planned, Governor Softić also attended a presentation entitled "The Most Modern Analytical Tools for Central Banking" in the part that referred to the technical mission of the IMF in the CBBH.

On this occasion, Governor Softić emphasized the successful cooperation between the IMF and the CBBH, who analyzed the management of foreign exchange reserves and of the balance sheet of the CBBH through the development and application of the most modern tools, and who, with its recommendations, helped the CBBH overcome the negative effects in the period of growing inflation and expectations about tightening of the monetary policy of the European Central Bank (ECB). The Governor pointed out that the CBBH, which was aware of possible changes in the financial markets, carried out the restructuring of the portfolio on time, thanks to the recommendations of the IMF. These recommendations helped the CBBH to make timely key decisions by which it reduced exposure to market risks, primarily interest rate risk, by shortening the duration of its total portfolio of foreign exchange reserves, primarily an investment portfolio.

In this way, the CBBH overcame, by all accounts, the challenging 2022, and maintained the stability of the currency board and thus the monetary stability of the country as a basic pillar of overall macroeconomic stability. The Governor expressed hope that successful cooperation will continue in the future.