One of the most important things to know when travelling abroad is what the local currency is and how it works.
That’s fairly easy and basic, in Bosnia and Herzegovina the currency is the convertible mark, which uses the symbol ‘KM’ and one mark is divided in to 100 fenings (or pfennigs). Fortunately both entities (Republika Srpska and the Federation of Bosnia and Herzegovina) use the same currency.
But then there are differences that I noticed after a few days in the country.
Firstly, the bank notes issued in the two entities have different pictures on them. They use the same colour scheme, but they feature different people on one side and different objects or places on the other.
The second, more subtle, difference is the order of the scripts. Both varieties use the Latin script and the Cyrillic script, but the order changes. In Republika Srpska it is Cyrillic first and Latin second, but this is reversed in the Federation. You can freely use both varieties anywhere in the country.
Coins are the same for both entities.
The Euro is not an official currency anywhere in Bosnia and Herzegovina, but there are many businesses willing to accept it, particularly in tourist areas (mainly in the Federation). Generally it will be at a rate of €1= 2KM.
In fact the official exchange rate is fixed and never changes. It is €1= 1.95583 KM. This comes about from the 1995 Dayton Accords which ended the Bosnian war. The accords established the convertible mark as the national currency which was fixed at parity with the German Mark (Deutsche Mark). When the Euro was introduced in Germany a few years later, the exchange rate of the Deutsche Mark to the euro thus became the exchange rate for the Bosnian currency too.
In 1998 the Convertible Mark became the sole official currency in Bosnia and Herzegovina, replacing the previous Bosnian dinars, Croatian kunas and Yugoslav novi dinars.
Cash is still king in Bosnia and Herzegovina. Fortunately ATMs are fairly abundant, but using foreign issued bank cards usually attracts a fairly hefty fee, which makes it cheaper to withdraw in larger, less frequent transactions rather than little and often. In the main tourist areas cards are sometimes accepted more often than elsewhere, but it’s best to ask first before ordering a three course meal!
Then there is always the issue of tipping. Tips are not obligatory here, but much appreciated. Even if you are paying by card, the tip should be in cash.
Generally about 10% or rounding up to the next 5-10 KM would be more than enough (common sense required), or if ordering just a coffee, just leave a few coins from the change.
For taxis, again round up to the next 5 or 10KM (they almost always say that they have no change anyway!).
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