Governor of the CBBH, Jasmina Selimović, Ph.D., participated in the regional meeting of Governors

Governor of the Central Bank of Bosnia and Herzegovina (CBBH), Jasmina Selimović, Ph.D., participated in the regional meeting of Governors, which took place in Osijek, in the organisation of the Croatian National Bank (HNB).

Within the Governors' panel entitled "Inflation and payment technologies in a rapidly changing world", Governor Selimović spoke about inflation trends and key causes of inflation in 2024, commenting on the challenges faced by small and open economies in the context of global uncertainty and changes in the energy, food and transport markets. She also presented inflation projections for Bosnia and Herzegovina for the coming period. The Governor pointed out that the administrative prices of electric energy in the local market, which increased significantly at the beginning of the current year, and increased transport costs, will increase inflation pressure in the coming period. On the other hand, it is necessary to carefully monitor the pressures from the labour market brought about by the minimum wage increase. The projection of food and other products prices is very uncertain due to various geopolitical turmoil, while transport prices are strongly impacted by difficulties in freight transport to the EU countries, added Governor Selimović.

Discussing the banking services development and the financial system modernisation in the region, with a special focus on the instant payments potentials, the Governor pointed out that instant payments bring numerous benefits, such as improving the user experience, enhancing the payment system efficiency and stimulating innovations in digital financial environment. She also stressed the importance of building adequate security mechanisms that will support the speed of transactions protecting users and institutions at the same time.

She also commented on the role of cash in the digitalised world, emphasizing that there is still a need for and attachment to cash due to the issues of accessibility, security and privacy. At the same time, she pointed out the continuing growth of the value and number of card transactions in BH.

During the regional meeting of Governors, the topic was also the central bank digital currency (CBDC), which is currently highly relevant at the global level. As discussions on cross-border payments accelerate around the world, digital euro is appearing as a step forward in the monetary systems modernisation within the European Union - and beyond. In this context, the Eurosystem (the European Central Bank and national central banks) explored the idea of a centrally issued digital currency that would complement cash, preserve monetary sovereignty and offer consumers and companies a secure, efficient payment instrument that could function smoothly across the euro area. In this regard, it was also discussed whether there is room and need in small open economies, such as those in the region, to develop their own national CBDC initiatives.

On this occasion, Governor Selimović spoke with Piero Cipollone, Member of the Executive Board of the European Central Bank (ECB) on current monetary challenges and future directions of cooperation.

The participation of Governor Selimović in this regional meeting is another confirmation of the Central Bank of Bosnia and Herzegovina's commitment to exchange of knowledge, regional cooperation and keeping up with global trends in central banking.