Foreign Exchange Reserves of CBBH Reached KM 1,5 Billion 11/21/2001 Tweet On the 19th November 2001 foreign exchange reserves of the Central Bank of Bosnia and Herzegovina reached KM 1,5 billion for the first time. At the end of August, 2001 the foreign reserves were KM 1,157 billion, so the foreign reserves have grown for 30 percent or over KM 340 million in less than three months. The reason for the strong growth in reserves is that large quantities of DEM banknotes are being converted by the citizens and enterprises of BH and a good proportion of them are being converted into KM. When this happens, the CBBH gains the foreign exchange and adds it to country's reserves. The foreign exchange reserves at KM 1,5 billion represent about 3,6 months coverage of BH's imports, based on the level of imports into BH in first six months of 2001. Rating agencies and other analysts consider three months coverage as a minimum reasonable level. "The fact that the foreign reserves of BH now exceed this minimum level should be another important factor that leads to an improvement in the international assessment of BH and its prospects", said Governor of CBBH Peter Nicholl. Public Relations Section Duška Jurišić
