Bosnian Currency — The Convertible Mark (BAM) in 2026

What Is the Currency of Bosnia and Herzegovina?

Bosnia and Herzegovina’s currency is the convertible mark (konvertibilna marka in Latin, конвертибилна марка in Cyrillic; symbol KM, ISO 4217 code BAM). It has been BiH’s currency since 22 June 1998, two and a half years after the Dayton Peace Agreement ended the Bosnian War. Subdivided into 100 fening.

The convertible mark is issued by the Central Bank of Bosnia and Herzegovina (CBBH), established 1997. The currency is managed under a currency-board arrangement: every BAM in circulation is fully backed by euro reserves, and the exchange rate is fixed at 1 EUR = 1.95583 BAM — the same conversion the Deutsche Mark had to the euro in 1999. The peg has never been adjusted.

Euro to US Dollar — 1-Year Chart

Because the convertible mark is rigidly pegged to the euro at 1.95583 BAM = 1 EUR, the BAM/USD rate simply mirrors EUR/USD multiplied by 1.95583. The chart below shows EUR/USD directly; the BAM/USD rate derives from it.

Over the past 12 months EUR/USD has moved in a 1.10–1.18 range. The implied BAM/USD has therefore moved between roughly 1.66 and 1.78 BAM per USD. Since Bosnia’s currency board means CBBH does not set an independent monetary policy, the relevant policy context is the ECB’s 2.00% deposit rate.

Banknotes and Coins

Bosnia’s banknotes are unique in European currency design: each denomination is issued in two parallel versions — one with Latin script featuring Federation of BiH figures, one with Cyrillic script featuring Republika Srpska figures. Both versions are fully interchangeable and legal tender across the whole country.

Coins come in five denominations, all with the official coat of arms of Bosnia and Herzegovina on the obverse and a common motif on the reverse.

History of The Convertible Mark

The convertible mark was created from scratch in 1997 as part of the post-Dayton reconstruction of Bosnia’s monetary system. Before it, Bosnia had no single national currency — Federation of BiH used the Bosnian dinar, Republika Srpska used the Republika Srpska dinar (also called the srpski dinar), and the German mark circulated widely. The currency-board design was chosen for credibility and has held for nearly three decades.

The Bosnian Economy and the Convertible Mark

Bosnia and Herzegovina is a small Western-Balkan economy — population ~3.2 million, GDP around $28 billion nominal. The economy is concentrated in services, light manufacturing (automotive parts, footwear, wood products), and remittances from the Bosnian diaspora in Germany, Austria, Switzerland, and Scandinavia, which together account for about 8% of GDP. Tourism has grown rapidly since 2015, especially in Mostar, Sarajevo, and the Dinaric mountains.

The currency-board arrangement means CBBH has no independent monetary policy. Its mandate is to maintain the fixed BAM/EUR peg by ensuring that every BAM issued is backed by euro reserves. The central bank’s ‘policy rate’ is simply the ECB’s rate transmitted through the peg. Inflation therefore tracks the euro area closely; 2026 Bosnian inflation is forecast around 2.5–3%, close to the ECB’s 2% target.

Using Convertible Marks in Bosnia

Cash is still dominant in Bosnia, though card acceptance has improved. In Sarajevo, Mostar, and Banja Luka, Visa and Mastercard work in chain cafés, larger restaurants, supermarkets, and hotels. Smaller family-run places, village shops, and taxis often accept only cash. Euros are widely accepted informally — especially in tourist areas — though change comes in marks.

Typical prices in KM (2026): espresso in a Sarajevo café 2–3 KM; a ćevapi dinner 10–18 KM; a meal in a mid-range restaurant 20–40 KM; a pint of beer 4–6 KM; a mid-range Sarajevo hotel room 100–180 KM. ATMs at UniCredit Bank, Raiffeisen Bank, and Sparkasse Bank are widespread. Euros can also be withdrawn from some ATMs, but locals mostly use KM.

The Convertible Mark in Regional Context

Bosnia sits in the Western Balkans with a patchwork of monetary regimes. Three of Bosnia’s neighbours use the euro in different ways: Croatia (full Eurosystem since 2023), Montenegro and Kosovo (unilateral euro), while Serbia and North Macedonia retain their own currencies.

Frequently Asked Questions

What is the currency of Bosnia and Herzegovina?

Bosnia and Herzegovina’s currency is the convertible mark (Latin: konvertibilna marka, Cyrillic: конвертибилна марка; symbol KM, ISO 4217 code BAM). It has been BiH’s currency since 22 June 1998.

Why is it called the ‘convertible’ mark?

The name reflects the currency’s defining feature: under the 1997 currency-board law, each BAM is freely convertible to euros at the fixed rate 1 EUR = 1.95583 BAM. The name was chosen to signal credibility after the instability of wartime currencies. The ‘mark’ part honours the Deutsche Mark, which had been the de facto stable currency in Bosnia during and after the war.

Is BiH in the Eurozone?

No. Bosnia and Herzegovina is not an EU member — it is an EU candidate since December 2022. It is not in ERM II. However, because of its currency-board peg, the convertible mark’s rate to the euro is already fixed at 1.95583, so euro adoption if and when it happens would be at that same rate with no additional exchange-rate risk.

Who manages Bosnian monetary policy?

The Central Bank of Bosnia and Herzegovina (CBBH) — but only within the constraints of the currency-board arrangement. CBBH cannot set an independent policy rate; its job is to ensure every BAM in circulation is backed by euro reserves, maintaining the 1.95583 peg. Governor: Jasmina Selimović since 2021.

How many marks is one US dollar worth?

Because BAM is pegged to EUR at 1.95583, the BAM/USD rate mirrors EUR/USD × 1.95583. At the latest close with EUR/USD ≈ 1.18, 1 USD ≈ 1.66 BAM. The rate fluctuates only with EUR/USD.

Why are there two versions of each Bosnian banknote?

Because BiH is a federation of two entities — the Federation of Bosnia and Herzegovina (majority Bosniak and Croat) and Republika Srpska (majority Serb). The 1995 Dayton Agreement required the banknotes to reflect this balance. Each denomination from 10 KM to 100 KM is issued in two parallel versions: one in Latin script featuring Federation-associated figures (mostly poets from Bosniak and Croat traditions), one in Cyrillic script featuring RS-associated figures. Both are fully interchangeable, legal tender across the whole country. The 200 KM note, introduced later, carries the same design on both versions — Ivo Andrić, the only Nobel laureate from former Yugoslavia.

Can I use euros in Bosnia?

Yes, quite often — especially in Mostar, Sarajevo’s old town, and around popular tourist sites. Many hotels, restaurants, and tour operators accept euros informally. Change is usually given in KM at the peg rate (1 EUR = 1.95583 BAM), so there is no meaningful exchange-rate loss either way.