prijava
SARAJEVO, June 22 (FENA) - The Central Bank of BiH today marked the 20th anniversary of the launch of the Convertible Mark (BAM/KM) as the legal tender in Bosnia and Herzegovina.
The first KM banknotes were issued on 22 June 1998, one year later since the Central Bank of Bosnia and Herzegovina had started its operations. Since that day, citizens have had on disposal the banknotes in denominations of 50 pfennig, 1 KM and 10 KM.
A month later, on 27 July 1998, the banknotes in denominations of 20 KM, 50 KM and 100 KM were put in circulation.
It is also important to mention the 200 KM denomination banknote, which was put in circulation on 15 May, 2002.
The first coins of the convertible mark were put in circulation on 9 December 1998. During this period, some of the first KM banknotes, denomination of 50 pfennig, 1 KM and 5 KM were removed from circulation and replaced by coins.
In the period when the KM was put in circulation, the currencies of foreign countries were still used in BH. The Deutsche Mark was accepted on the entire territory of BiH.
Soon after, KM started being the dominant currency in cash transactions, and by the end of 1999, it became the one and only legal tender.
Firstly, the convertible mark was pegged to the Deutsche Mark under the exchange rate 1 KM = 1 DEM.
By withdrawing the Deutsche Mark, the KM undertook exchange rate of DEM to euro – one convertible mark against 0.51129 euro, i.e., one euro to 1.95583 KM.
All this time, one thing has remained certain: the value of the convertible mark in euro has never been jeopardized; the Central Bank of Bosnia and Herzegovina issues the local currency banknotes in circulation and withdraws them according to the Currency Board arrangement pursuant to the CBBH Law.
Introduction of the convertible mark was not only a good move, but the decisive one in creation of the monetary system and maintenance of the currency stability, stated the CBBH in the press release.
(FENA) S. R.
