Presentation of the Central Bank of Bosnia and Herzegovina Annual Results

On December 27, 2024, the Central Bank of Bosnia and Herzegovina (CBBH) held the Annual Meeting of Employees under the motto "Vision in Action - Results and Outlooks", at which the results for 2024 and the CBBH Strategic Plan for the period 2025–2027 were presented. On that occasion, it was emphasized that the mission of the CBBH - preserving monetary and financial stability through the issuance of domestic currency under a currency board arrangement - remains the foundation of its activities. The Bank's strategic priorities include monetary and financial stability, modernization and digitalization of business processes, management of human resources, and international connectivity and social engagement.

During the meeting, participants reviewed key achievements in 2024, including human resources development, infrastructure modernization and the introduction of SEPA standards, with a special focus on the integration of the principles of sustainable development.

The Governor of the CBBH, Jasmina Selimović, Ph.D. emphasized that the year, coming to itsend, has brought numerous challenges, but also successes. She reviewed the business results and activities implemented during 2024, highlighting key steps that will shape the future work of the institution.

At the end of November 2024, the Bank's foreign exchange reserves amounted to KM 17.2 billion, which is KM 1.52 billion more than in 2023, while net foreign assets amounted to KM 1.34 billion, which represents an increase of KM 456.9 million compared to the previous year.

During 2024, the currency board coverage ratio increased significantly, which as of November 30, 2024 amounted to 108.47%, with an estimate that it will amount to more than 109% by the end of the year. This means that the Central Bank has more than 9% of net foreign exchange reserves to absorb interest rate and credit risk, further confirming the stability of the currency board. During the year, monetary gold reserves increased to the highest level since the establishment of the Central Bank of Bosnia and Herzegovina.

The net profit for the first 11 months of 2024 amounted to KM 399,582,286, being KM 156,638,002 more than in the same period of the previous year and 30.22% more than planned for that period.

Capital and reserves for the first 11 months of 2024 amounted to KM 1,432,545,521, which is KM 513,854,416 more than in the same period in 2023.

By decision of the Governing Board of the CBBH, in 2024, there was initiated the process of withdrawing from circulation convertible mark banknotes in denominations of 10 KM, 20 KM, 50 KM and 100 KM issued between 1998 and 2009. With the support of the Presidency of BH, the process of improving the security features of the convertible mark was also initiated, with the aim of preserving the integrity of the domestic currency and raising the quality standards of money. With the Croatian mint, the CBBiH signed an Agreement on the production and delivery of convertible mark coins in denominations of 1; 0.50; 0.20; 0.10; 0.05.

"We have positioned the CBBH in the international context and hosted more than 20 ambassadors and other representatives of international organizations," said Governor Selimović.

She pointed out that the CBBH has intensified the activities within its mandate in the part related to the EU accession process, and the first workshop on the EU accession process was held in the CBBH, which marked the beginning of bilateral cooperation with the Croatian National Bank within the IPA regional program for strengthening the capacities of Central Banks in the Western Balkans, with the aim of integration into the European System of Central Banks (ESCB). A Memorandum of Cooperation was signed with the Directorate for Economic Planning (DEP), specifying the exchange of data and information that will enable the harmonization of internal business processes with relevant reporting calendars to EU institutions. The participation of the CBBH was specifically defined with the aim of improving the comprehensiveness and quality of the document "Economic Reform Program (ERP) of Bosnia and Herzegovina". As part of its activities in the field of international cooperation and EU integration, the CBBH organized and participated in important conferences and meetings in cooperation with international partners (IMF, World Bank, EU, SECO, Central Banking, EBRD, EFSE).

"We have placed the Central Bank of Bosnia and Herzegovina on the map of members of the most important global networks for sustainable finance and greening the financial system - the Network for Greening the Financial System (NGFS), which consists of 141 central banks and banking sector regulators from developed and developing countries, as well as 21 international organizations in the role of observers, and the Sustainable Banking and Finance Network (SBFN), which consists of 94 organizations from 72 countries, covering at least 92% of banking assets in countries considered to be emerging markets," added the Governor, emphasizing the most important activities in 2024.

The CBBH has also joined the Reserve Advisory and Management Partnership (RAMP) of the World Bank, whose experts provide assistance in terms of governance, strategic asset allocation, portfolio and risk management, as well as foreign exchange collateral instruments.

From January 2025, the CBBH will, in cooperation with EFSE, and with the financial support of the EU, work on the introduction of statistical reporting on gender equality in the financial sector of Bosnia and Herzegovina, as well as on the development of gender-sensitive/responsible policies within the CBBH operations.

In her presentation, Governor Selimović also pointed out significant projects to improve the level of Cyber ​​Security in 2024, which, among other things, relate to the establishment of cooperation on the exchange of cyber events with the institutions of BH through the banking supervision coordination body and the expansion of the personal data monitoring system to databases within the Payment Systems. An external Cyber ​​Security Risk Assessment was also conducted and the vulnerability of the CBBH information system was checked.

Special attention was paid to strengthening the Bank's reputation through increased transparency and openness towards the public, which resulted in a professional attitude of the media towards the institution.

Acting as a socially responsible institution, monetary donations were collected on behalf of CBBH employees for flooded areas, CBBH employees responded to the voluntary blood donation campaign, and CBBH signed a Memorandum of Cooperation with SOS Children's Villages of BiH, in order to provide children without parental care with paid internships and professional mentoring for the purpose of their career development and easier integration into the labor market.

In the field of financial education, over 50 visits were organized with 1452 pupils and students, within the Head Office, Main Units and Branches of CBBH. In addition, a multi-year project was launched to introduce financial education into the educational system with eight public economic faculties, Entities' Banking Agencies and Insurance Supervision Agencies. The CBBH became a member of the EFMD Global network, which enabled the introduction of the highest standards of learning and knowledge transfer.

By organizing this meeting, CBBH once again demonstrated its commitment to unity and joint achievement of goals in order to strengthen the CBBH as a monetary institution, and therefore a strong foundation for the further economic development of the country.

An the link you can download Strategic Plan 2025 - 2027 ENG