Decision on Withdrawal from Circulation and Exchange of Bosnia and Herzegovina Dinars

Decision on Withdrawal from Circulation and Exchange of Bosnia and Herzegovina Dinars, UV No.: 12/98 dated 28.05.1998

PUBLISHED: "Official Gazette of BiH", 10/98 "Official Gazette of the Federation of BiH", 26/98 "Official Gazette of the RS", 27/98

Based on Article 39 of the Law on the Central Bank of Bosnia and Herzegovina ("Official Gazette of Bosnia and Herzegovina", 1/97), the Governing Board of the Central Bank of Bosnia and Herzegovina, at its 9th meeting on May 28, 1998, adopts

D E C I S I O N on the withdrawal from circulation and exchange of Bosnia and Herzegovina dinar banknotes

1. Bosnia and Herzegovina dinar (hereinafter: BHD) banknotes, which are in circulation as legal tender according to the Decision of the National Bank of Bosnia and Herzegovina on the issuance and basic characteristics of banknotes, dated August 15, 1994, ("Official Gazette of the Republic of BiH", 29/94), are withdrawn from circulation and exchanged for convertible marks (hereinafter: KM) as legal tender for cash payments in Bosnia and Herzegovina.

2. The exchange of banknotes from point 1 of this Decision shall take place starting from June 22, 1998, at 9:00 AM until July 6, 1998, at 12:00 PM, in all organizational units of the Payment Institute of the Federation of Bosnia and Herzegovina (hereinafter: organizational units of the Institute) through which BHD banknote transactions were conducted.

3. The exchange of banknotes shall be carried out at the official exchange rate: 100 BHD for 1 KM, implying that holders of BHD banknotes shall be paid the corresponding value in KM banknotes or that their accounts at the Payment Institute of the Federation of Bosnia and Herzegovina shall be credited, without charging commissions and other fees.

4. Organizational units of the Institute that exchange BHD banknotes for KM banknotes, in cases where a single holder exchanges an amount greater than 500,000 BHD, shall require appropriate identification documents from the holder of the banknotes and register the exchange using the serial numbers of the exchanged BHD banknotes. Such records shall be made available to the Central Bank of Bosnia and Herzegovina and other authorized bodies upon their request. Organizational units of the Institute that exchange BHD banknotes may also request identification documents in other cases if they deem it necessary, primarily from the perspective of assessing the authenticity of the banknotes being exchanged.

5. Organizational units of the Institute, as well as commercial banks, starting from June 22, 1998, and onwards, shall make all cash disbursements from accounts held in KM exclusively in KM banknotes.

6. Holders of BHD banknotes may freely make cash payments with these banknotes in circulation within the established period for their exchange, until July 6, 1998.

7. Starting from July 7, 1998, BHD banknotes cease to be valid as legal tender and cannot be accepted in cash transactions for the settlement of any obligations, nor can they be accepted into deposit accounts.

8. The Central Bank of Bosnia and Herzegovina, in justified cases, may grant approval to exchange BHD banknotes after the expiration of the period specified in point 2 of this Decision.

9. The Central Bank of Bosnia and Herzegovina, if necessary, will issue further instructions that will be mandatory for the organizational units of the Institute and commercial banks in the implementation of this Decision.

10. This Decision enters into force on the day of its publication in the Official Gazettes of Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, and the Republic of Srpska.

UV No.: 12 /98 Chairman May 28, 1998. Governing Board of the Central Bank S a r a j e v o of Bosnia and Herzegovina G O V E R N O R Peter Nicholl