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Bosnia-Herzegovina, bounded by Croatia, Serbia and Montenegro, was part of Yugoslavia. It declared independence in 1992. However, a civil war soon erupted among Serb, Bosniak, and Croat factions. The 1995 Dayton Peace Accord created a joint multiethnic central government. It also created a second tier of government comprised of two entities roughly equal in size: the Bosniak/Croat Federation of Bosnia and Herzegovina and the Bosnian Serb-led Republika Srpska.

In the 1998 currency reform, Dinar was replaced by Convertible Marka, initially pegged to German Mark, now pegged to Euro.

For a more detailed country profile, see CIA World Factbook on Bosnia-Herzegovina.