Bosnia-Herzegovina Convertible Mark

The Bosnia and Herzegovina convertible mark (BAM) is the currency of Bosnia and Herzegovina. It is divided into 100 pfenigs (Bosnian: pfenig/пфениг) and is locally abbreviated KM. The BAM was established by the Dayton Agreement of 1995 and its currency code is BAM. The three-letter abbreviation is derived from the German: Mark bzw. Marka, and the official name in Bosnian and Croatian is Konvertibilna marka (pronounced [kɔnvertibl̩naː mârka]), while in Serbian it is Конвертибилна марка or Konvertibilna marka. The BAM is pegged to the euro and consists of 100 fenings (Bosnian: fening/фенинг). The word "convertible" in the currency's name refers to its being pegged to the euro; it is convertible on demand at a 1:1 rate with the euro. BAM is widely accepted in Kosovo[citation needed] and Montenegro. In Serbia, BAM is accepted only in private transactions. The National Bank of Bosnia and Herzegovina (Centralna banka Bosne i Hercegovine/Централна банка Босне и Херцеговине) has the exclusive right to issue the currency.