Currency in Bosnia and Herzegovina
Since June 1998, the common currency Convertible Mark (KM), the official abbreviation BAM ISO Code 4217, has been introduced for the two states of Bosnia-Herzegovina. The exchange rate is linked to the EUR at a rate of 1.95583.
History of the currency of Bosnia and Herzegovina
Until 1998, different currencies were used in the sub-areas of Bosnia and Herzegovina, Yugoslav dinar, Croatian kuna and Bosnian dinar.
In the early 1980’s, inflation was 40 percent. The social situation was made even worse by the high level of foreign debt and a program run by the International Monetary Fund. In early 1986 the inflation rate reached almost 100 percent.
In 1989 the Yugoslav trade war began, where Serbia imposed special taxes on Croatian and Slovenian goods. In response, Croatia demanded special taxes from Serbs who owned real estate on the Adriatic.
From 1992 to 1995 the so-called Bosnian War began. The effects of the war were devastating. In the period from 1991 to 1995, economic output fell by 75%. The considerable destruction of industrial plants, infrastructures and apartments resulted in damage that, according to the Bosnian government, is estimated at up to 45 billion UDS.
Since June 1998 the introduction of the currency convertible mark, which is linked to the German mark (1: 1), has been recognized as a valid means of payment for Bosnia and Herzegovina.
1999 Establishment of a customs union for a common economic area. In 2008, an interim agreement improved access for goods from Bosnia-Herzegovina.
The most important trading partner for Bosnia Herzegovina is the EU with around 74%.
The convertible mark has been pegged to the euro since 2002. 1 euro was changed to 1.95583KM during this time. The convertible mark is divided into 100 Fening (abbreviation Kf.).
Exchange into the currency of Bosnia and Herzegovina
Since 2010 it is no longer possible to pay with foreign currency in Bosnia and Herzegovina by law. In some smaller shops, however, the option to pay in euros is still offered.
When entering the country, it is advisable to change money beforehand.The best way to determine the exact exchange amount is using a currency converter.
Of course, it is also possible to exchange money in Bosnia-Herzegovina, but usually for a slightly higher commission. You can exchange money in banks or exchange offices and in some hotels.
