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. 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 ...
  2. Forex Fundamentals

    Top 6 Most Tradable Currencies

    Here are six currencies that can diversify your portfolio.
  3. 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.
  4. 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.
  5. 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 ...
  6. Investing

    Why Include Convertible Securities in Your Portfolio

    What are convertible securities and why you should include them in your portfolio.
  7. 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.
  8. Financial Advisors

    Worried About Stocks? Try on Convertibles

    Convertibles are a good hedge against equity market risk (if you're o.k. with losing a bit of upside potential).
  9. Forex

    Top Exchange Rates Pegged To The U.S. Dollar

    From the end of World War II until around 1971, all countries in the IMF pegged their currencies to the U.S. dollar. Today, many still do.
  10. Mutual Funds & ETFs

    3 Best High-Yielding Convertible Bond Mutual Funds (LACFX, FACVX)

    Discover an often overlooked asset class and how your portfolio can benefit from it, and learn about three of the highest-yielding options available.
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. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center