Macroeconomic Forecast Bosnia

October 2006 | Macroeconomic Forecasts

Bosnian forex reserves continue to rise, reaching nearly US$3bn in May according to IMF data. We do not think that the current political situation will have any significant effect upon the country's international liquidity cushion, and reserves should rise further over the coming years on the back of increased FDI inflows. A short-list has been announced for US$1.28bn of energy sector investment, which will be key in this regard. This adds to our view that the currency peg remains solid and a important anchor to Bosnian economic

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