Changes of the Law on Old Foreign Savings Will Not Jeopardize Stability of Currency and Monetary Policy of BH

Stability of the local currency and Currency Board as the monetary policy of the state will not be jeopardized by adoption of amendments to the Law on Settlement of Debts based on the Basis of Old Foreign Savings Accounts, as, according to some media, some BH officials stated.

Amendments of this Law which were adopted by the BH Parliament House of Representatives cannot question monetary stability, and they cannot cause monetary inflation, because the Central Bank of BH (CBBH) operates according to the Law on CBBH, which defines that the Currency Board is the monetary policy of the state. It means that not a single Convertible Mark cannot be put in circulation without backing.

Statements that adoption of amendments of the Law on Settlement of Debts based on old foreign savings accounts would jeopardize stability of the local currency and Currency Board Arrangement, which will cause high inflation, are totally unfounded.