Bosnia-Herzegovina Convertible Mark - BAM

DEFINITION of 'Bosnia-Herzegovina Convertible Mark - BAM'

The currency of Bosnia and Herzegovina. The Bosnia-Herzegovina convertible mark uses two types of coins: maraka (for higher denominations) and fening (lower denominations). It also uses banknotes denominated in maraka (derived from the word "mark"). The currency is issued by the Central Bank of Bosnia and Herzegovina.

BREAKING DOWN 'Bosnia-Herzegovina Convertible Mark - BAM'

The currency was established in 1995, and replaced the Bosnian dinar and Croatian kuna. It was initially pegged to the German mark (hence "mark" in its name), but switched to being pegged to the euro when Germany adopted it in 2002.

RELATED TERMS
  1. Denomination

    A classification for the stated or face value of financial instruments, ...
  2. EUR

    The currency code used in the general industry to represent the ...
  3. Jumbo CD

    A certificate of deposit (CD) with a minimum denomination of ...
  4. Transfer Risk

    The risk that a local currency cannot be converted into the currency ...
  5. Currency Translation

    The process of quoting the amount of money denominated in one ...
  6. Eurocommercial Paper

    An unsecured, short-term loan issued by a bank or corporation ...
Related Articles
  1. Personal Finance

    Conclusion

    There is more to the history of currency than paper money. Here's a rundown of some strange currencies.
  2. Professionals

    International Bonds

    CFA Level 1 - International Bonds. Learn the several types of international bonds traded on the external market. Includes foreign, global, sovereign and Eurobonds.
  3. Professionals

    Exchange-Rate Risk

    CFA Level 1 - Exchange-Rate Risk. A brief look at how exchange-rate risk can affect investments. Provides an example on the downsides of exchange-rate risk.
  4. Bonds & Fixed Income

    How Exchange Risk Affects Foreign Bonds

    Investors include foreign bonds in their portfolios to take advantage of higher interest rates or yields, and to diversify their holdings. However, the higher return expected from investing in ...
  5. Forex Fundamentals

    Top 6 Most Tradable Currencies

    Here are six currencies that can diversify your portfolio.
  6. Forex Education

    The History Of Money: From Barter To Banknotes

    Money has been a part of human history for at least 3,000 years. Learn how it evolved.
  7. Personal Finance

    The Currency Board: Understanding The Government's Bank

    Currency board, central bank - what's the difference? Find out more about this little-known monetary authority.
  8. Economics

    How Currency Works

    Currency offers key advantages over economies based on direct trade. It provides sellers with a broader market for their goods and services, and provides a durable asset with which people can ...
  9. Economics

    Understanding the History of Money

    Money has been a part of human history for at least 3,000 years, evolving from bartering to banknotes.
  10. Personal Finance

    5 Famous Discontinued And Uncommon U.S. Currency Denominations

    While we can choose from a rich array of singles, fins, sawbucks, Jacksons, $50s and Benjamins, there are several other denominations that the U.S. Treasury has discontinued.
RELATED FAQS
  1. What does it mean when a derivative is marked to market?

    Learn what it means when a derivative is marked to market. Mark to market rules have been put in place by global regulators ... Read Answer >>
  2. Why do forex traders use a currency converter?

    All currencies are quoted in pairs - one country's currency against another country's currency. A currency converter is used ... Read Answer >>
  3. What is the difference between convertible and reverse convertible bonds?

    The difference between a regular convertible bond and a reverse convertible bond is the options attached to the bond. While ... Read Answer >>
  4. How can a company hedge with currency swaps?

    Read a brief overview of how currency swap exchanges function, why a swap bank is necessary, and how the parties involved ... Read Answer >>
  5. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
  6. Why did the New York Stock Exchange report prices in fractions before it switched ...

    Before April 9, 2001, when the Securities and Exchange Commission ordered all U.S. stock markets to switch to the decimal ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center