Bosnia-Herzegovina Convertible Mark - BAM

AAA

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.

INVESTOPEDIA EXPLAINS '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. C-Note

    A slang term for a one hundred dollar banknote. The "C" in C-note ...
  2. Currency Peg

    A country or government's exchange-rate policy of pegging the ...
  3. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by ...
  4. Central Bank

    The entity responsible for overseeing the monetary system for ...
  5. Fixed Exchange Rate

    A country's exchange rate regime under which the government or ...
  6. Pegging

    1. A method of stabilizing a country's currency by fixing its ...
Related Articles
  1. Forex Education

    The Impact Of Currency Conversions

    Will a rising or falling dollar hurt you or your company? In this article we explore the impact of currency converisons on consumers, comanies, and countries.
  2. Forex Education

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  3. Forex Education

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  4. Forex Education

    The Pros And Cons Of A Pegged Exchange Rate

    A pegged currency can give a country many advantages, but these advantages come at a price.
  5. Forex

    Understanding Currency Carry Trade

    A currency carry trade is a long-term investment strategy used primarily by large institutional investors. The purpose is to make a profit over time from differences in interest rates between ...
  6. Forex

    What Is Online Trading Academy?

    Online Trading Academy educates individuals about stocks, forex, futures and options as well as investment strategies based on the student’s trading style.
  7. Forex Education

    Understanding The Spread in Retail Currency Exchange Rates

    Understanding how exchange rates are calculated and shopping around for the best rates may mitigate the effect of wide spreads in the retail forex market.
  8. Forex

    Main Factors That Influence Exchange Rates

    The exchange rate is one of the most important determinants of a country's relative level of economic health, and can impact your returns.
  9. Forex Fundamentals

    How To Calculate An Exchange Rate

    Struggling to get a grasp on exchange rates? Here's what you need to know.
  10. Forex Fundamentals

    What Would Have To Happen For The Iraqi Dinar To Become A Stable Investment?

    What factors would cause price changes in the controversial Iraqi dinar?

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center