Vice Governor Vidaković Presented the Experiences of the CBBH at the Central Banking Autumn Meetings

Vice Governor of the Central Bank of Bosnia and Herzegovina, Marko Vidaković, M.Sc. participated as a speaker at the Central Banking Autumn Meetings, which were held on November 19 and 20, 2025 in Rio de Janeiro, Brazil.

On that occasion, Vice Governor Vidaković presented the experiences and practices of the Central Bank of Bosnia and Herzegovina in the management of foreign exchange reserves within the framework of the currency board, as well as the challenges that central banks face in the modern global economic environment.

The Vice Governor pointed out that preserving the integrity of the currency board and the stability of the monetary system are the basis of trust in the financial system of Bosnia and Herzegovina. During its 28 years of existence, the Central Bank of Bosnia and Herzegovina consistently strengthened financial stability, adapted to changing monetary cycles and took timely measures to respond to the demands of the global market.

The Central Bank of Bosnia and Herzegovina continuously fulfills its key mandate - preservation of monetary stability and integrity of the currency board, which is the basis for all other institutional activities and reform processes, including modernization, innovation, financial inclusion, sustainability and management improvement. This role and results are confirmed in the latest reports of the International Monetary Fund and the European Commission for 2025.

The portfolio of foreign exchange reserves of the Central Bank of Bosnia and Herzegovina is organized into several clearly defined segments that are managed according to specific functions - from ensuring operational liquidity and optimizing the liquidity position to achieving long-term returns. This structure enables sophisticated risk management and efficient balancing between safety, liquidity and yield, in full compliance with the institutional framework of the currency board.

Foreign exchange management follows global trends in the integration of ESG factors, including investments in green government bonds with a high credit rating, as well as gold. In this way, the reserves are further diversified and the stability of the domestic currency is strengthened. Despite the long period of low and negative interest rates in the euro area (2015–2022), full coverage of monetary obligations was successfully preserved, and timely strategic measures led to the growth of the coverage ratio to over 109.5% in 2025, with the Central Bank's capital at a historical maximum.

Vice Governor Vidaković particularly emphasized that in September 2025, the Central Bank of Bosnia and Herzegovina successfully switched to the execution of financial transactions in MX format according to the international ISO 20022 standard, without any disruptions in payment processes, which confirms the professionalism and institutional maturity of the Central Bank.

The participation of Vice Governor Vidaković at the Central Banking Autumn Meetings once again confirms the international credibility of the Central Bank of Bosnia and Herzegovina, and its continued dedication to strengthening financial stability, improving the management of foreign exchange reserves and exchanging expertise with partner institutions around the world.