Instructions on the Exchange of Worn and Damaged Banknotes and Damaged Coins

»Službeni glasnik BiH«, 35/03 of November 25, 2003

Based on Article 7, point b. of the Law on the Central Bank of Bosnia and Herzegovina (“Službeni glasnik BiH”, nos. 1/97, 29/02, 8/03, 13/03 and 14/03) and point 11. of the Instruction on the issuance and storage of banknotes and coins and the supply of cash to the main units and branches of the Central Bank of Bosnia and Herzegovina, 01 – 529/03 of July 10, 2003, the Governing Board of the Central Bank of Bosnia and Herzegovina at its 2nd meeting, held on September 18, 2003, adopts

I N S T R U C T I O N

on the exchange of worn and damaged banknotes and damaged coins

1. The Central Bank of Bosnia and Herzegovina (hereinafter: the Central Bank) exchanges worn and damaged banknotes and damaged coins, issued by the Central Bank, which are being withdrawn from circulation and cease to be legal tender in the manner prescribed by this Instruction.

2. The exchange of worn banknotes is carried out at full value if the banknotes have become obsolete due to use or are not suitable for circulation due to their appearance.

3. The exchange of damaged banknotes is carried out at full value in the case of:

a) banknotes that have been torn into two or more parts, and their parts have been glued together to form whole banknotes;

b) banknotes that are damaged by grease or are burnt, scorched, gnawed, or faded, provided that the damage does not exceed 40% of the surface area of a correct banknote and contains at least one serial number;

c) banknotes whose part is submitted for exchange in one whole piece and amounts to at least 60% of the surface area of a correct banknote and contains at least one serial number.

4. The exchange of damaged coins is carried out at full value if its design can be read, if it has retained its shape and is not perforated.

5. The exchange of worn and damaged banknotes and damaged coins is carried out by commercial banks. The Central Bank determines the compensation for this service by decision.

6. This Instruction enters into force on the day of its publication in the "Službeni glasnik BiH", and will also be published in the "Službene novine Federacije BiH", "Službeni glasnik Republike Srpske" and »Službeni glasnik Brčko distrikta BiH«.

7. With the entry into force of this Instruction, the Instruction on the exchange of worn and damaged banknotes and damaged coins (“Službeni glasnik BiH”, no. 32/02) ceases to be valid.

UV no: 5 / 03 Chairman September 18, 2003 of the Governing Board of the S a r a j e v o Central Bank of Bosnia and Herzegovina G O V E R N O R Peter Nicholl