KOZARIC: THERE IS NO NEED FOR DEVALUATION OF BOSNIAN MARK

SARAJEVO, Bosnia (January 16,2008) - In fear of speculated devaluation of the Bosnian Mark, the Bosnian citizens have started buying up euros, and shortage is already starting to be felt, according to the Banja Luka daily Nezavisne Novine.

Although the Bosnian national currency is pegged to the Euro, speculations appeared recently that it could depreciate, so instead of the 1,9 Bosnian Marks one Euro was worth in Bosnia yesterday, it could be worth up to 2,4 Bosnian Marks.

However, the Governer of the Bosnian Central Bank Kemal Kozaric assures that there is no need to print banknotes, and the Bosnian citizens do not need be concerned.

Kozaric reminded that Bosnia’s current foreign reserve is the highest since the formation of the Bosnian Central Bank, and amounts to 5.4 billion Bosnian Marks.Other bankers and analysts also said yesterday that the fear is unjustified and that devaluation of the Bosnian national currency is not possible as it is legally bound to Euro.