100 Konvertibilnih Maraka

The Konvertibilna Marka was introduced in 1998 as part of the Dayton Agreement's economic architecture, pegged at parity to the Deutsche Mark and administered through a currency board arrangement — meaning the Central Bank held no discretionary monetary policy powers whatsoever. Every marka in circulation had to be fully backed by foreign exchange reserves, a constraint deliberately written into the banking law to prevent the kind of hyperinflationary collapse that had devastated the Yugoslav dinar years earlier.

When Germany adopted the euro in 2002, the KM's peg transferred automatically to the euro at the inherited DM rate of 1.95583, where it remains fixed today — making this note's issuing period a transitional one in more ways than the calendar suggests.