On this day, 11 October, 20 years ago, the official foreign exchange rate has been determined, according to which1 BAM=0.51129 EUR, i.e. 1 EUR=1.95583 BAM. The official exchange rate of BAM to EUR was agreed upon by the CBBH Governing Board on that day, defining the provisions of the Draft Law on Amendments and Supplements of the Law on the Central Bank of Bosnia and Herzegovina. The mentioned official foreign exchange rate was defined according to the official exchange rate for the conversion of Deutsche mark (DEM) in relation to
It is known that the CBBH is
Therefore, for the Currency Board to function, foreign exchange reserves must be sufficient to enable all those who own BAM banknotes and coins, including bank funds in the CBBH reserve accounts and deposits of Central Bank depositors, to convert them into reserve currency. Simply put, each issued BAM has coverage in foreign currency or, in the language of the profession, monetary liabilities must never be bigger than the foreign currency assets of the CBBH.
The full convertibility of the convertible mark has never been questioned, and the domestic public, relevant domestic and international institutions