Montenegro Demands Asoban Offer Explanation on the Lack of US Dollars in Banks
Montenegro’s Vice President for Economy and Finance, Lidija Vukcevic, is demanding a response from the Association of Banks (ASOBAN) regarding the lack of US dollars in Montenegro’s banks. This follows reports that Montenegro’s Central Bank (CBCG) has been unable to provide currency exchanges in US dollars since April 6.
What is Asoban?
Asoban is an association of all commercial banks operating in Montenegro. It is legally recognized as an association with professional legal competence to protect the collective interests of banks and financial institutions.
The Situation
The shortage of US dollars in Montenegrin banks has been causing alarm with both citizens and those in the financial sector. Foreigners and dual citizens who want to exchange money into US dollars have been unable to do so since the beginning of April.
Vukcevic strongly criticized Asoban for not providing enough information on the situation and for not taking a stand to resolve the matter. In an interview with Montenegrin newspaper Vijesti, she stated, “It is not enough for Asoban to indicate only that CBCG failed to replenish the [US dollar] reserves.”
The Impact
The lack of US dollars in Montenegrin banks has had a large impact on Montenegrin citizens and businesses. Citizens who need the currency to pay tuition abroad or to make international transfers have found themselves unable to do so. Businesses who use US dollars to pay for imports have encountered difficulty in managing their finances, and the Montenegrin economy has been affected as a result of the shortage.
The Solution
In order to resolve the situation, Vukcevic has called upon Asoban to take active steps to help out. She has suggested that Asoban come up with an immediate solution that would ensure both the replenishing of US dollar reserves and the normalization of currency exchange.
Asoban has yet to respond to Vukcevic’s call for an explanation and for a solution, but the Montenegrin Vice President has made it clear that something needs to be done in order to stabilize the currency exchange market in the country.
In conclusion, the situation in Montenegro echoes the global need for more transparency and clarification when it comes to US dollar reserves in banks. Vukcevic’s ultimatum to Asoban is an important reminder that answers must be provided in order to quash citizen fears and to restore trust in the banking system.
