Interview of Governor for Večernji list:CBBH helps recovery of BH and expects a GDP growth of 3.4%

The Central Bank helps the recovery of BH and expects a GDP growth of 3.4%

The meeting of the Governing Board of the Central Bank of BH has been held this week in Sarajevo, when the decision has been made on continuing undisturbed operation of this institution according to the Law on the Central Bank of BH and the CBBH regulations. In that context, Governor Senad Softić, Ph.D., in the interview for Večernji list, explained the procedures respected, and also commented on the projections of economic recovery for this year, saying that the annual growth of GDP is expected to be 3.4%.

He also pointed out a high importance of this institution in the context of creating stable economic environment as the necessary precondition for the growth of economic activity in BH.  

Projections

Softić explained that the attitude of the Governing Board of the Central Bank of BH, referring to the relevant provisions of the law ensuring continuity in the present situation, is that the Central Bank shall continue to perform its role, tasks and functions without disturbances, which also includes Governor, according to the Law on the Central Bank of BH and the CBBH regulations, until the Presidency of BH appoints new members of the Governing Board.  

Speaking of the expectations for this year, regarding economic indicators, Softić referred to the spring round of medium term macroeconomic projections showing moderate economic recovery in 2021.

- We expect the annual growth of real GDP of 3.4%. The autumn round of macroeconomic projections, prepared on the basis of the quarterly data from mid 2021 and the available monthly data for the third quarter, is scheduled to be announced in November. However, the existing data currently do not indicate that the 2021 projections from May would be significantly changed - Softić said.

Speaking of the work of this institution, he stressed that the Central Bank would continue to work within its authorities defined by the law and thus contribute to the process of economic recovery in Bosnia and Herzegovina. He mentioned several examples.

- Foreign exchange risk, which can significantly influence the country's recovery is very low (it is never negligible, as risk always exists) as the CBBH consistently implements the currency board policy. We will continue to implement the required reserve policy in all its segments as by now, by helping economic development and stability of the country - said Softić.

If economic trends change or a change of key macroeconomic trends is observed, they are ready to take all the measures available according to the law.

Stable environment

- We will continue to ensure undisturbed functioning of interbank payment system. All the other CBBH functions are performed regularly, including the communication with relevant international institutions, rating agencies, contributing to positive economic environment –Governor said.

By sharing reliable economic information and analyses in a transparent way and by fulfilling the obligations expected from the country in the EU integration process, the Central Bank of BH contributes to economic recovery, he said.

In short, Softić concluded, by professionally performing all its tasks according to the law, the Central Bank of BH significantly helps in creating stable economic environment as a necessary condition for the growth of economic activity in Bosnia and Herzegovina.