Chapter VI Foreign Exchange Rate Policy, Foreign Exchange Reserves, and Foreign Exchange Control

CHAPTER VI Foreign Exchange Rate Policy, Foreign Exchange Reserves, and Foreign Exchange Control

Article 48. Foreign Exchange Control

1. The Convertible Mark is freely convertible into foreign currency in Bosnia and Herzegovina.
2. The Central Bank or other authorities shall not impose restrictions on payments and international transactions, unless the Central Bank determines that such restrictions are necessary to fulfill the obligations of Bosnia and Herzegovina in accordance with international law. The Governing Board must adopt a unanimous decision on all such matters.

Article 49. Clearing Agreements and Payment Agreements The Central Bank may, either on its own account or on behalf of and under the instructions of Bosnia and Herzegovina, enter into clearing and payment arrangements, or conclude any other contract for the same purpose with public or private clearing institutions located abroad.

Article 50. Foreign Exchange Reserves

1. The Central Bank creates and maintains a specific foreign exchange reserve consisting of the entire or partial assets of the Central Bank listed in Article 31, paragraph 2 of this Law.
2. The Central Bank invests foreign assets in accordance with the principles and practices of sound investment and only in liquid securities issued by the government or central bank of the country whose currency the securities are denominated in.

Article 51. Reporting on Foreign Exchange Transactions The Governing Board of the Central Bank may require banks to periodically submit reports to the Central Bank through its organizational units regarding their total open foreign exchange positions. The Central Bank shall prescribe the forms for the report and the corresponding documentation that must be submitted.