Convertible Marka: A Comprehensive Guide

Introduction

The convertible marka (KM) is the official currency of Bosnia and Herzegovina. It was introduced in 1995 as a replacement for the Bosnian dinar, and has been in circulation ever since. The KM is pegged to the euro at a rate of 1 EUR = 1.95583 KM.

Key Features

• Convertibility: The KM is fully convertible, meaning that it can be freely exchanged for other currencies.
• Stability: The KM is pegged to the euro, which gives it a high degree of stability.
• Low inflation: Bosnia and Herzegovina has a low inflation rate, which helps to keep the value of the KM stable.
• Wide acceptance: The KM is widely accepted throughout Bosnia and Herzegovina, and is also used in neighboring countries such as Serbia, Croatia, and Montenegro.

Exchange Rates

The KM is pegged to the euro at a rate of 1 EUR = 1.95583 KM. This rate has been in place since 1997, and has remained stable for over 20 years.

History

The convertible marka was introduced in 1995 as a replacement for the Bosnian dinar. The dinar had been in circulation since 1992, but had become highly unstable due to the war in Bosnia and Herzegovina. The KM was introduced to help stabilize the economy and provide a more stable currency for the country.

Economic Impact

The convertible marka has had a positive impact on the economy of Bosnia and Herzegovina. It has helped to stabilize the economy, reduce inflation, and increase foreign investment. The KM has also made it easier for businesses to trade with other countries, and has helped to improve the overall standard of living in Bosnia and Herzegovina.

Future Prospects

The convertible marka is expected to continue to be the official currency of Bosnia and Herzegovina for the foreseeable future. The country is committed to maintaining the stability of the KM, and has taken steps to ensure that the currency remains convertible. The KM is also likely to continue to be widely accepted throughout the region, and is expected to remain a key part of the Bosnian economy.

Tables

Table 1: Exchange Rates

Table 2: Inflation Rates

Table 3: GDP Growth Rates

Table 4: Foreign Direct Investment

FAQs

1. What is the exchange rate of the convertible marka?

The exchange rate of the convertible marka is 1 EUR = 1.95583 KM.

2. Is the convertible marka a stable currency?

Yes, the convertible marka is a stable currency. It is pegged to the euro, which gives it a high degree of stability.

3. What is the inflation rate in Bosnia and Herzegovina?

The inflation rate in Bosnia and Herzegovina is low, at around 1.5% per year.

4. What is the GDP growth rate in Bosnia and Herzegovina?

The GDP growth rate in Bosnia and Herzegovina is around 3% per year.

5. How much foreign direct investment is there in Bosnia and Herzegovina?

Foreign direct investment in Bosnia and Herzegovina is around 1,800 million USD per year.

6. Can I use the convertible marka outside of Bosnia and Herzegovina?

The convertible marka is widely accepted in neighboring countries such as Serbia, Croatia, and Montenegro. However, it is not as widely accepted in other countries.

Conclusion

The convertible marka is a stable and reliable currency that is essential to the economy of Bosnia and Herzegovina. It has helped to stabilize the economy, reduce inflation, and increase foreign investment. The KM is also widely accepted throughout the region.