Central Bank of Bosnia and Herzegovina Governor calls for protecting central bank independence amid fiscal risks and global uncertainty

The Governor of the Central Bank of Bosnia and Herzegovina, Jasmina Selimović, delivered remarks at the Belgian-Dutch Constituency Central Bank Governors’ conference of the International Monetary Fund in Brussels, focusing on global financial trends, fiscal risks and how monetary policy should react under persistent political and economic uncertainty. Selimović argued that central bank independence underpins macroeconomic stability and is essential for maintaining price and financial system stability, requiring protection of institutional, operational and financial autonomy from short-term political and fiscal pressures. She warned that even moderately indebted countries can face higher risk when political uncertainty and budgetary needs increase, and that irresponsible or unpredictable fiscal policy can erode market confidence by putting central bank independence in question. She also noted that a weaker US dollar can channel capital into developing economies but may fuel excessive borrowing and currency risk, increasing vulnerability to abrupt shifts in global financial conditions. Measures cited to safeguard independence and credibility included greater transparency using the IMF Central Bank Transparency Code, stress testing central bank balance sheet positions, and improving operational efficiency, alongside a broader conclusion that fiscal discipline and transparency of public borrowing support long-term macroeconomic stability and investor confidence.