NO PRINTING MONEY WITHOUT FOUNDATION

Central Bank announced today that it does not print money without backing. The Central Bank says that the printing of banknotes and coins after the current contracts can not result in any connection with the allegations in some media that it is done with a view to their issue without coverage.

With the law

The statement said that the Central Bank will put and withdraw from circulation the national currency of adhering strictly to the currency board rules defined by the Law on the Central Bank of Bosnia and Herzegovina., Writes Oslobodjenje.Central Bank of Bosnia and Herzegovina is in accordance with the law obliged to ensure regular supply of banknotes and coins of KM through their insertion and withdrawal from circulation at the request of commercial banks, including the replacement of those that have become unfit for circulation.

- These bills through commercial banks withdrawn from circulation and replaced by new, but implementation requires commercial banks to download cash from the vault of the Central Bank carried out in accordance with the law and regulations of the Central Bank - said in a statement.The Central Bank says that bills have their lifetime, because the use of wear and damage, and to annually withdraw and destroy about 20 percent of banknotes unfit for circulation, and they are replaced with new ones.

- In addition, account should be taken and the continuous increase of cash in circulation as a result of demand for KM from commercial banks, which is about 10 percent annually, but when it comes to coins, for them is characteristic continuous increase in demand, particularly of small denominations - said in a statement.

cash management

Current contracts for production and delivery of banknotes and coins of KM were concluded in 2016 for regular supply of banknotes, and in accordance with assessed needs cash circulation for a longer period. The production of additional quantities of banknotes and coins of this type Central Bank carried out since its establishment, and its production are a precondition for the regular supply of cash KM.

- Information on the management of cash, detailed information on quantities in circulation available to the public through regular monthly and annual reports to the Central Bank, which are published on the website of the institution -, the statement said.From the Central Bank point out that, after completion of the production process, to make a decision on successive release notes and coins in circulation and HP to announce in the Official Gazette and the Official Gazettes of the Entities and Brcko District.

• 11 Feb, 2017
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