20 Years Anniversary since putting the Convertible Mark in Circulation

June 23, 2018 4:00 PM

The convertible mark celebrates 20 years of its putting in circulation as the legal tender in Bosnia and Herzegovina.

The first banknotes of KM were issued on 22 June 1998, after almost one year since the Central Bank of Bosnia and Herzegovina had started its operations.  Since that day, citizens had on disposition the banknotes in denominations of 50 fening, 1 KM and 10 KM.  A month later, on 27 July 1998; banknotes in denominations of 20 KM, 50 KM and 100 KM were put in circulation. Although it does not reach this anniversary by the time being in circulation, it is necessary to mention the 200 KM denomination banknote, which was put in circulation on 15 May, 2002. The first coins of convertible mark were put in circulation on 9 December 1998.  During this period, some of the first KM banknotes, the denomination of 50 fening, 1 KM and 5 KM were removed from circulation and replaced by coins.

In period, when the KM was put in circulation, the currencies of foreign countries were in circulation in BH, out of which, the Deutsche Mark being accepted at the whole territory of BH. Very soon, KM started to prevail in cash transactions, and by the end of 1999, it became one and only legal tender.

Firstly, the convertible mark was pegged to the Deutsche Mark by exchange rate 1 KM = 1 DEM. By withdrawing of Deutsche Mark, KM undertook exchange rate of DEM to euro – one convertible mark against 0.51129 euro, i.e. one euro against 1.95583 convertible mark.

All these years, one thing has been certain: the value of convertible mark in euro has never been jeopardized, the Central Bank of Bosnia and Herzegovina lets the local currency banknotes in circulation and withdraw them according to the Currency Board arrangement pursuant to the CBBH Law.  Introduction of the convertible mark was not only the good move, but the decisive one in creation of the monetary system and maintenance of the currency stability.

As of the last day of May 2018, the total value of the KM cash out of the Central Bank vaults amounted to KM 4 452 111 578.60, i.e. there were  65 167 762 pieces of banknotes and  344 831 027 coins in circulation.

In cash production, the CBBH follows the technical standards of the European Union countries as related to the quality, life cycle and banknotes’ and coins’ securities features. The KM banknotes and coins have been produced out of the high quality materials and the security features have been permanently upgraded in order to protect them from counterfeiting.

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