Central Bank of Bosnia and Herzegovina Governor highlights inflation pressure points and instant payments priorities at regional governors meeting

The Central Bank of Bosnia and Herzegovina reported that Governor Jasmina Selimovic took part in a regional governors meeting in Osijek organised by the Croatian National Bank, where she discussed recent inflation dynamics and payment system modernisation. In a panel on inflation and payment technologies, she reviewed key drivers of inflation in 2024 and presented Bosnia and Herzegovina’s inflation projections. She identified higher administratively set electricity prices at the start of the year and rising transport costs as factors expected to add to inflation pressures, while noting the need to closely monitor labour-market pressures linked to the minimum wage increase. Food and other product price projections were described as highly uncertain amid geopolitical turmoil, and transport prices were linked to difficulties in freight transport to European Union countries. On payments, she emphasised the benefits of instant payments for user experience, efficiency and digital innovation, alongside the need for security mechanisms that match faster transaction speeds; she also noted continued demand for cash due to accessibility, security and privacy considerations, while card transaction volumes and values continue to grow. Discussions also covered central bank digital currency, including the digital euro concept being explored by the Eurosystem, and whether small open economies in the region should develop national CBDC initiatives; Selimovic also met with European Central Bank Executive Board member Piero Cipollone to discuss monetary challenges and future cooperation.