The Central Bank of Bosnia and Herzegovina (Bosnian, Croatian and Serbian: Centralna banka Bosne i Hercegovine / æõýÃÂÃÂðûýð ñðýúð ÃÂþÃÂýõ ø Ã¥õÃÂÃÂõóþòøýõ) is the central bank of Bosnia and Herzegovina, located in the capital city, Sarajevo.
The National Bank of Bosnia and Herzegovina (NBBH) was originally established in 1971 under the decentralization reforms of that era, as one of eight so-called national banks complementing the National Bank of Yugoslavia within what was referred to as the System of National Banks. Upon Bosnian independence in March 1992, the NBBH became the national central bank of the newly independent, but the Bosnian War soon resulted in the creation of a separate National Bank of the Republika Srpska (NBRS) in the Republika Srpska, and of a monetary system under the Ministry of Finance of the Croatian Republic of Herzeg-Bosnia.
Following the Dayton Agreement and end of the Bosnian War, The Central Bank of Bosnia and Herzegovina was established in accordance with the Law adopted at the Parliamentary Assembly of Bosnia and Herzegovina on , and started operations on . It incorporated the former operations of both the NBBH and NBRS; the NBBH was subsequently liquidated.
The Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the currency board arrangement with full coverage in freely convertible foreign exchange funds under the fixed exchange rate (1 BAM: 0.51129 EUR). The Central Bank of Bosnia and Herzegovina defines and controls the implementation of monetary policy of Bosnia and Herzegovina. The Central Bank of Bosnia and Herzegovina supports and maintains appropriate payment and settlement systems. It also co-ordinates the activities of the BH Entity Banking Agencies, which are in charge of bank licensing and supervision.
The Central Bank of Bosnia and Herzegovina has the head office, three main units and two branches. The main units are the Main Unit Sarajevo, the Main Bank of Republika Srpska CBBH Banja Luka and Main Unit Mostar. The branches are: the CBBH Branch in BrÃÂko and the Main Bank of Republika Srpska CBBH Branch in Pale.
The senior body of the Central Bank of Bosnia and Herzegovina is the governing board, which is in charge of establishing and supervision of monetary policy, organization and strategies of the Central Bank, all according to the powers given to the board by the law. According to the law on CBBH, the governing board consists of five persons that are appointed by the BH presidency for a six-year mandate. The governing board appoints one of its members as governor.
The management of the Central Bank of Bosnia and Herzegovina consists of a governor and three vice governors, appointed by the governor with the approval of the governing board. The task of the management is the operative management of the Central Bank business. Each vice governor is directly responsible for the operations of one sector of the Central Bank.
The Central Bank's head office building was originally completed in 1931 for the Sarajevo branch of the State Mortgage Bank of Yugoslavia. The architect was the Serbian and Yugoslav architect Milan ZlokoviÃÂ. The set designer of the National Theatre in Belgrade, Vladimir Pavlovich Zagorodnjuk, created eight reliefs for the front and side facades, as well as two monumental bronze figures of a man and a woman placed at the main entrance.
The following have been Governors of the Central Bank of Bosnia and Herzegovina: