Stability and peace has returned to the Balkan region with the signing of a peace agreement in November 1995 referred to as the ‘Dayton Peace Accord’. Western aid monies have since helped to rebuild this war torn country home to 4.5 million. Challenges still remain for Bosnia and Herzegovina including an unemployment rate that is at the 30 percent level even when the large black market economy is factored in. With an inefficient industrial and agricultural sector, the nation is still a net importer of food.
Economic Statistics>
Total GDP as measured by purchasing power parity stands at $23 billion USD (2005) with GDP/Capita at $6,800 USD (2005). Market GDP at $9 billion USD (2005). GDP growth rate at 5.3 percent (2005). Inflation quotes have year 2000 at 3 percent, year 2005 at 4.4 percent. Current account deficit is large at $2.1 billion USD (2005). Foreign exchange reserves including gold stand at $2.5 billion USD (2005). External debt came in at $3.1 billion USD (2005).
CURRENCY: ISO Symbol ‘BAM’, Bosnia Marka, convertible mark. At time of review on October 17, 2006, the Bosnian marka had an exchange value of 1.559 BAM to the US-dollar (USD) and/or 1.955 BAM to the Euroland euro (EUR). Currency board arrangement since the Dayton/Paris treaty of 1995 with the marka pegged to the euro at 1.95583 BAM to 1 EUR. Other currencies in circulation may include the neighboring Croatian kuna.
CURRENCY HISTORY: the Bosnia marka replaced the former dinar in June 1998. Prior to the current exchange rate peg to the EUR, the current marka was originally pegged to the German mark at par and accordingly took the German mark’s new exchange valuation to the euro of where it is fixed today. Historical valuations for the marka include year 2005 at 1.572 BAM to the USD, 2004 at 1.572, 2003 at 1.7329, year 2002 at 2.078 and 2001 at 2.187.
CURRENCY FORECAST: the currency board arrangement with the anchor currency being the Euroland euro has helped to keep inflation low and provide for relative currency stability. In the long term, EU membership may be attained by year 2015.
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