Dnevni avaz: The decision on using the free exchange reserves of the Central bank of BiH can be adopted only by the Presidency of BiH, by taking into account that the monetary stability remains preserved and needed law changes adopted, has been said yesterday for "Dnevni avaz" by Kemal Kozarić, governor of the CBBiH.
This way he has commented the yesterday's announcement of the entity prime minister Milorad Dodik that his government will launch an initiative that "certain funds of reserves get used for supporting the economy".
Dodik has yesterday announced that the Government of the RS will launch the activities for the resources which the CBBiH keeps in the foreign banks to get transferred in BiH and used for moderating the negative effects of the world economic crisis.
Kozarić says that the possibility of adopting the additional measures has not been excluded, but adds that the consensus of governments and changes of regulations are needed for that.
– We have some 560 million KM of free reserves above the obligated amount, which preserves the monetary stability. Part of those funds we could use to a purpose of supporting the economy, but not all of it; let us say 60-70%. We would have to make careful analyses and estimations on how much we can use, if it comes enabled by the law – Kozarić has said.
According to him, that would be the first relaxation of strict policies of the Currency board of BiH, which is now one of the strictest in Europe, and which has kept the convertible mark stable.
– There is a space for the Central bank to get the function of the "last asylum" in which the commercial banks would be enabled, if their liquidity gets endangered, to contact the CBBiH. By the changes of law there can be given a possibility, like in other countries, that the Central bank from those funds credits the commercial banks, which would positively influence the interest rates as well – our interlocutor has pointed out.
But, the governor warns that the existing free reserves have not come "by themselves", but that they are result of a qualitative work and decisions of the Currency board and the Central bank, because of which there are now funds which could be available.
– If those funds become activated, then they have to be used in the interest of all citizens of BiH, in development, but not in spending, nor in the benefit of some parties or individuals –Kozarić points out.