Central Bank of Bosnia and Herzegovina presents currency board reserve management and ISO 20022 payment migration at Central Banking Autumn Meetings

The Central Bank of Bosnia and Herzegovina reported that Vice Governor Marko Vidakovic spoke at the Central Banking Autumn Meetings in Rio de Janeiro on 19–20 November 2025, presenting the Bank’s experience in managing foreign exchange reserves within a currency board and discussing the challenges central banks face in the current global economic environment. The presentation emphasised that maintaining the integrity of the currency board and monetary system stability underpins trust in Bosnia and Herzegovina’s financial system, and noted that this role and results are reflected in the 2025 reports of the International Monetary Fund and the European Commission. The foreign exchange reserve portfolio is organised into defined segments with functions ranging from operational liquidity to long-term returns, designed to balance safety, liquidity and yield in line with the currency board framework. Reserve management was also described as incorporating ESG factors through investments in highly rated green government bonds and gold; despite low and negative euro area interest rates in 2015–2022, full coverage of monetary obligations was maintained and strategic measures increased the coverage ratio to over 109.5% in 2025, alongside a historical peak in central bank capital. The update also highlighted a successful switch in September 2025 to executing financial transactions in MX format under the ISO 20022 standard without disrupting payment processes.