CONVERTIBLE MARK INTRODUCED AS BOSNIA'S NEW CURRENCY

( Editorial: --> 2903 ) SARAJEVO, June 22 (Hina) - The exchange of Bosnia's dinar with a new currency, the convertible mark, began on Monday according to a previously determined plan and has been progressing without problems apart from minor crowds at some places, representatives of the Central Bank of Bosnia-Herzegovina and the Money Transfers Bureau (ZPP) of the Croat-Muslim Federation of BH told reporters in Sarajevo on Monday. The exchange of the Bosnian dinar began at 8pm in 60 ZPP units in both Bosnian entities (the Federation and the Bosnian Serb entity), ZPP deputy director Sead Jelec said, emphasising the exchange will run till July 7. Among the first who exchanged money in Sarajevo was Central Bank governor Peter Nicholl. He told reporters he was very satisfied that BH was getting a new currency for whose firmness and reliance all preconditions had been provided. Convertible mark banknotes not only resemble the German mark but also share many aspects, currency reliance in the first place, Nicholl said. Acting on behalf of the Currency board, the Bosnian Central Bank will lead a very strict monetary policy, he told reporters. There will be no loans to either government or business banks and we shall take strict care to make the convertible mark maintain a 1:1 ratio in relation to the German mark, Nicholl said. He emphasised that no commission or cost will be charged for the exchange of the convertible mark into the German mark. So far the Bosnian Central Bank has printed 130 million-worth of the new currency, as this is the cover in German marks at its disposal. Banknotes of 50 pfenings, 1.5 and 10 convertible marks have been distributed today. Banknotes of 20, 50 and 100 convertible marks are also planned as the Central Bank starts gathering a firm currency to cover the distribution of new amounts of money. (hina) ha/bag 221547 MET jun 98