Convertible Mark in Use for 20 Years

The convertible mark marks 20 years since its release into circulation as legal tender in Bosnia and Herzegovina.

The first KM banknotes were issued on June 22, 1998, less than a year after the start of operations of the Central Bank of Bosnia and Herzegovina (CBBiH). From that day, citizens had at their disposal banknotes in denominations of 50 feninga, 1 KM, 5 KM, and 10 KM. A month later, on July 27, 1998, banknotes in denominations of 20 KM, 50 KM, and 100 KM were put into circulation. Although not celebrating this anniversary due to the length of time it has been in circulation, it is necessary to mention the 200 KM banknote, which has been in circulation since May 15, 2002. The first coins of the convertible mark were put into circulation on December 9, 1998. Over the years, some of the first KM banknotes, denominations of 50 feninga, 1 KM, and 5 KM, were withdrawn from circulation and ceased to be legal tender, replaced by coins.

At the time when the KM was put into circulation, foreign currencies were used in BiH, among which the German mark was accepted throughout the entire territory of the country. Very quickly, the KM became the dominant means in cash transactions, and by the end of 1999, it became the sole means of payment.

The convertible mark was initially pegged to the German mark at a rate of 1 KM = 1 DEM. With the withdrawal of the German mark from circulation, the KM adopted the German mark's exchange rate to the euro - one convertible mark for 0.51129 euros, or one euro for 1.95583 convertible marks.

Throughout all these years, one thing was certain: the value of the convertible mark, expressed in euros, was never questioned. The Central Bank of Bosnia and Herzegovina puts domestic currency banknotes into circulation and withdraws them from circulation strictly adhering to the currency board rules established by the Law on CBBiH. The introduction of the convertible mark was not only a good but also a decisive step in creating the monetary system and maintaining currency stability.

On the last day of May 2018, the total value of KM cash outside the Central Bank amounted to 4,452,111,578.60 KM, meaning there were 65,167,762 banknotes and 344,831,027 KM coins in circulation.

In the production of cash, the CBBiH is guided by technological standards implemented in European Union countries, relating to the quality, lifespan, and security features of banknotes and coins. KM banknotes and coins are produced with high-quality materials and security features that are continuously improved to protect against counterfeiting.