Bosnian Mark

Overview

The Bosnian Mark (BAM) is the currency used in the country of Bosnia. The Mark is subdivided into 100 fenings and was pegged to the German Mark prior to the introduction of the Euro. Bosnia uses the same fixed rate as the German Mark — 1.935583 BAM = 1 Euro. The Bosnian Mark is also known as the Bosnia and Herzegovina Convertible Mark.

Economy

• In 1991 Bosnia declared sovereignty and broke away from Yugoslavia.
• Bosnia’s main industries are zinc, coal, iron, aircraft, vehicles, textiles, tobacco, oil refining, domestic appliances, ore, manganese, steal, and lead.
• The country’s export products are wood, clothing, and metals. Imported products are chemicals, food, equipment, and machinery.
• Bosnia has a high unemployment rate of 43%.
• The economy of Bosnia is recovering after the Bosnian war and the socialistic Yugoslavian economic structure. Bosnia is still trying to transform from a socialist to a capitalist economy.
• The country currently relies on humanitarian aid and reconstruction funding.
• GDP growth for 2010 was 0.5%.
• Public debt accounts for 40% of the GDP.
• Inflation in Bosnia is low because of the country’s strict currency control.

History

• From 1992 to 1998 the Bosnian Dinar (BAD) was used as Bosnia’s official currency. The Dinar consisted only of banknotes and was not subdivided.
• The Dinar was replaced by the Bosnian Mark (BAM) in 1995, because of the Dayton agreement.
• Coins were introduced in 1998.
• All banknotes except the 200-mark note are issued by the Central Bank of Bosnia & Herzgoniva.
• The 5-mark banknote was taken out of circulation at the beginning of 2010; however, the 5-mark coin is still being distributed.