The CBBH Foreign Exchange Reserves Amounted to KM 5, 4 Billion by the End of 2006

According to the preliminary financial figures, the Central Bank of Bosnia and Herzegovina (CBBH) concluded 2006 with amount of KM 5,4 billion of foreign exchange reserves.

Foreign exchange reserves increased by around KM 1, 2 billion, while net foreign exchange reserves amounted to KM 221, 6 million by the end of year.

The profit of the CBBH is expected to be KM 79, 2 million, out of which, according to the CBBH Law, amount of KM 20, 2 million will be allocated on the account of the state institutions' budget.
Total capital, upon distribution of this profit's part to the state, is amounting to KM 301 million.

As the state fiscal agent, the CBBH regularly serviced the foreign debt. Bosnia and Herzegovina is indebted with KM 4, 2 billion and it is considered to be moderately indebted country.

The payment balance is negative, and the trade deficit has a biggest influence on it. Data for 2006 say that there was a decrease of trade deficit, but it is still very high. The CBBH analysis, related to all 12 months of 2006 and based on data from the data base of the Indirect Taxation Administration, show that BH in 2006 imported goods in total of KM 11, 1 billion and exported in value of KM 5, 2 billion.

It means that, according to the preliminary data of the Indirect Taxation Administration, coverage in 2006 amounted to 46, 8%. This very improvement of coverage caused the decrease of trade deficit by 23, 7% or KM 1, 2 billion.

However, the CBBH draws our attention, to the fact that among products, which BH imports there are those produced in the country, such as mineral water, beer, cigarettes and other items. Importing of these products, along with some other that BH imports, significantly influences the trade deficit.