You’re standing in a small bakery in Sarajevo, the smell of fresh burek hitting you like a freight train, and you reach for your wallet. You have a handful of Euros and maybe a stray US dollar. You think, "Hey, it’s Europe, right? This should work."
Well, it might. But honestly? It probably won't, and if it does, you're likely paying a "tourist tax" you didn't bargain for.
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The bosna i hercegovina currency, known formally as the Convertible Mark (or Konvertibilna Marka), is one of the most stable, yet deeply misunderstood, currencies on the planet. People call it the BAM, the KM, or just "the mark." It’s got a history that reads like a geopolitical thriller and a peg that makes it a rock-solid piece of paper in a sometimes shaky region.
The Secret History of the "German" Mark
Here is the thing: the Bosnian currency isn't actually Bosnian by design. Not originally, anyway. Back in 1998, after the war ended and the country was trying to figure out how to function without hyperinflation destroying everything, they needed a solution. Fast.
The solution was the Currency Board arrangement.
They basically cloned the German Mark (Deutsche Mark). At the time, Bosnians trusted the German Mark more than any local paper. So, the authorities created the Convertible Mark and pegged it 1:1 to the German currency. When Germany switched to the Euro in 2002, Bosnia didn't flinch. They just shifted the peg.
Today, the exchange rate is mathematically locked. 1 Euro equals exactly 1.95583 BAM. It never moves. It doesn't fluctuate when the government changes or when global markets go nuts. It’s fixed. If you’re trying to do quick math in your head while buying a coffee, just divide by two. It’s close enough for government work, as they say.
Two Versions of Everything?
This is where it gets kinda weird for travelers. Bosnia and Herzegovina is made up of two main entities: the Federation of Bosnia and Herzegovina and Republika Srpska.
Because of this, there are actually two different designs for almost every banknote.
- Federation notes: These usually feature Bosnian and Croatian writers and use Latin script primarily.
- Republika Srpska notes: These feature Serbian poets and scholars, with Cyrillic script taking the top spot.
Don't panic. Both are equally legal everywhere. You can spend a "Serbian" 10-mark note in a "Croatian" part of Mostar without anyone batting an eye. The only note that doesn't have two versions is the 200 KM bill—that one is a "unity" design featuring Ivo Andrić, the Nobel Prize-winning author. Honestly, you'll rarely see the 200 KM note anyway. It’s like the $100 bill in the States; shops hate changing it.
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Denominations You'll Actually Handle
- Banknotes: 10, 20, 50, 100, and 200 KM. (The 1 and 5 KM notes were phased out years ago).
- Coins: 1, 2, and 5 KM.
- Feninga: These are the "cents." You’ll see 5, 10, 20, and 50 feninga coins.
The 5 KM coin is particularly hefty. It’s bi-metallic and feels like real money.
Can You Actually Use Euros?
The short answer is: legally, no. The long answer is: sometimes.
In 2026, the bosna i hercegovina currency remains the only official legal tender. However, if you are in a heavy tourist area like the Baščaršija in Sarajevo or near the bridge in Mostar, some souvenir shops and private restaurants will take your Euros.
But they’ll give you a terrible rate. They might charge you at 1:1.8 instead of the official 1:1.95. Over a long lunch, that adds up to a lot of lost coffee money. Plus, by law, shops are supposed to record transactions in BAM. If you pay in Euro, you’re basically asking the shopkeeper to go through a whole song and dance (or just break the law) to accommodate you.
Just get the local cash. It’s easier.
Where to Get the Best Rate
Don't bother exchanging money at the airport unless you just need enough for a taxi. The rates there are predictably mid.
Banks are your best bet for security, but the local mjenjačnica (exchange offices) are everywhere and usually offer very fair rates. Look for the yellow signs. Because the rate is fixed to the Euro, there isn't much room for them to "scam" you on the conversion itself, though they might charge a small commission.
Pro tip: If you have an ATM card, just use it. Most ATMs in Sarajevo, Banja Luka, and Tuzla are modern and accept international Visa and Mastercard. Just watch out for those "Dynamic Currency Conversion" prompts. If the ATM asks if you want to be charged in your home currency or the local BAM, always choose BAM. Let your own bank handle the math; the ATM's conversion rate is almost always a rip-off.
The Grey List and Digital Payments
There’s been some talk recently about Bosnia being on a "grey list" regarding international transactions. What does that mean for you? Not much on the ground. Your cards will still work at the big supermarkets like Bingo or Konzum.
But Bosnia is still very much a cash-heavy society.
If you’re heading into the mountains, visiting a small village, or taking a taxi, your plastic is useless. Always keep at least 50 KM in your pocket for emergencies. You'll find that even in 2026, the local "postalo" (waiter) might shrug and point to a "No Card" sign when you try to pay for your third round of rakija.
Security Features: How to Spot a Fake
The Central Bank of Bosnia and Herzegovina (CBBH) takes this seriously. The notes have all the bells and whistles:
- Watermarks: Hold it to the light to see the ghost-like portraits.
- Security Thread: A dark line that runs through the paper.
- Microprinting: Tiny text you can only see with a magnifying glass.
- Holograms: On the higher denominations, there's a shiny strip that changes color.
To be perfectly honest, counterfeiting isn't a massive problem here for tourists, but it doesn't hurt to check if a 50 KM note feels like it was printed on an old inkjet. It should feel crisp and slightly raised in certain areas (intaglio printing).
Actionable Steps for Your Trip
- Don't bring a ton of cash from home: Just bring enough Euros or Dollars to get you through the first day.
- Use the 2:1 rule: To quickly check a price, just divide the BAM by 2 to get the Euro equivalent. It’s the easiest way to keep your budget in check.
- Ask for "sitno": That means "small change." Most small shops struggle with 50 or 100 KM notes first thing in the morning. Try to break your big bills at large grocery stores or gas stations.
- Spend it before you leave: The BAM is basically impossible to exchange once you leave the Balkans. While you might find a stray exchange office in Croatia or Serbia that takes it, once you're back in London, New York, or Berlin, those colorful notes are just souvenirs.
- Check your coins: Make sure you aren't carrying around a pocket full of feninga when you cross the border; they're worth pennies and nobody outside Bosnia wants them.
The bosna i hercegovina currency is a symbol of the country’s resilience. It survived the transition from a socialist economy, a brutal war, and the death of the German Mark. It’s stable, it’s reliable, and once you get used to the two different versions of the banknotes, it’s actually pretty easy to handle.
Just remember: Cash is king, the rate is fixed, and always, always carry small bills for your coffee.