diff --git a/src/components/MoneyRequestConfirmationList.js b/src/components/MoneyRequestConfirmationList.js
index 4079d1240e61..2cc458d0e4ad 100755
--- a/src/components/MoneyRequestConfirmationList.js
+++ b/src/components/MoneyRequestConfirmationList.js
@@ -133,7 +133,7 @@ function MoneyRequestConfirmationList(props) {
      */
     const getParticipantsWithAmount = useCallback(
         (participantsList) => {
-            const iouAmount = IOUUtils.calculateAmount(participantsList.length, props.iouAmount);
+            const iouAmount = IOUUtils.calculateAmount(participantsList.length, props.iouAmount, props.iouCurrencyCode);
             return OptionsListUtils.getIOUConfirmationOptionsFromParticipants(participantsList, CurrencyUtils.convertToDisplayString(iouAmount, props.iouCurrencyCode));
         },
         [props.iouAmount, props.iouCurrencyCode],
@@ -176,7 +176,7 @@ function MoneyRequestConfirmationList(props) {
                 }));
             }
 
-            const myIOUAmount = IOUUtils.calculateAmount(selectedParticipants.length, props.iouAmount, true);
+            const myIOUAmount = IOUUtils.calculateAmount(selectedParticipants.length, props.iouAmount, props.iouCurrencyCode, true);
             const formattedPayeeOption = OptionsListUtils.getIOUConfirmationOptionsFromPayeePersonalDetail(
                 payeePersonalDetails,
                 CurrencyUtils.convertToDisplayString(myIOUAmount, props.iouCurrencyCode),
diff --git a/src/components/ReportActionItem/IOUPreview.js b/src/components/ReportActionItem/IOUPreview.js
index 85a0b22ac327..0aa2aa16524e 100644
--- a/src/components/ReportActionItem/IOUPreview.js
+++ b/src/components/ReportActionItem/IOUPreview.js
@@ -237,7 +237,7 @@ function IOUPreview(props) {
                         {props.isBillSplit && !_.isEmpty(participantAccountIDs) && (
                             <Text style={[styles.textLabel, styles.colorMuted, styles.ml1]}>
                                 {props.translate('iou.amountEach', {
-                                    amount: CurrencyUtils.convertToDisplayString(IOUUtils.calculateAmount(participantAccountIDs.length - 1, requestAmount), requestCurrency),
+                                    amount: CurrencyUtils.convertToDisplayString(IOUUtils.calculateAmount(participantAccountIDs.length - 1, requestAmount, requestCurrency), requestCurrency),
                                 })}
                             </Text>
                         )}
diff --git a/src/libs/CurrencyUtils.js b/src/libs/CurrencyUtils.js
index f8d56f7e60e9..271086ede36e 100644
--- a/src/libs/CurrencyUtils.js
+++ b/src/libs/CurrencyUtils.js
@@ -28,7 +28,7 @@ Onyx.connect({
  */
 function getCurrencyDecimals(currency = CONST.CURRENCY.USD) {
     const decimals = lodashGet(currencyList, [currency, 'decimals']);
-    return _.isUndefined(decimals) ? 2 : Math.min(decimals, 2);
+    return _.isUndefined(decimals) ? 2 : decimals;
 }
 
 /**
@@ -73,54 +73,49 @@ function isCurrencySymbolLTR(currencyCode) {
 }
 
 /**
- * Takes an amount as a floating point number and converts it to an integer amount.
- * For example, given [25, USD], return 2500.
- * Given [25.50, USD] return 2550.
- * Given [2500, JPY], return 2500.
+ * Takes an amount as a floating point number and converts it to an integer equivalent to the amount in "cents".
+ * This is because the backend always stores amounts in "cents". The backend works in integer cents to avoid precision errors
+ * when doing math operations.
  *
- * @note we do not currently support any currencies with more than two decimal places. Sorry Tunisia :(
+ * @note we do not currently support any currencies with more than two decimal places. Decimal past the second place will be rounded. Sorry Tunisia :(
  *
- * @param {String} currency
  * @param {Number} amountAsFloat
  * @returns {Number}
  */
-function convertToSmallestUnit(currency, amountAsFloat) {
-    const currencyUnit = getCurrencyUnit(currency);
-    // We round off the number to resolve floating-point precision issues.
-    return Math.round(amountAsFloat * currencyUnit);
+function convertToBackendAmount(amountAsFloat) {
+    return Math.round(amountAsFloat * 100);
 }
 
 /**
- * Takes an amount as an integer and converts it to a floating point amount.
- * For example, give [25, USD], return 0.25
- * Given [2550, USD], return 25.50
- * Given [2500, JPY], return 2500
+ * Takes an amount in "cents" as an integer and converts it to a floating point amount used in the frontend.
  *
  * @note we do not support any currencies with more than two decimal places.
  *
- * @param {String} currency
  * @param {Number} amountAsInt
  * @returns {Number}
  */
-function convertToWholeUnit(currency, amountAsInt) {
-    const currencyUnit = getCurrencyUnit(currency);
-    return Math.trunc(amountAsInt) / currencyUnit;
+function convertToFrontendAmount(amountAsInt) {
+    return Math.trunc(amountAsInt) / 100.0;
 }
 
 /**
- * Given an amount in the smallest units of a currency, convert it to a string for display in the UI.
+ * Given an amount in the "cents", convert it to a string for display in the UI.
+ * The backend always handle things in "cents" (subunit equal to 1/100)
  *
- * @param {Number} amountInSmallestUnit – should be an integer. Anything after a decimal place will be dropped.
+ * @param {Number} amountInCents – should be an integer. Anything after a decimal place will be dropped.
  * @param {String} currency
  * @returns {String}
  */
-function convertToDisplayString(amountInSmallestUnit, currency = CONST.CURRENCY.USD) {
-    const currencyUnit = getCurrencyUnit(currency);
-    const convertedAmount = Math.trunc(amountInSmallestUnit) / currencyUnit;
+function convertToDisplayString(amountInCents, currency = CONST.CURRENCY.USD) {
+    const convertedAmount = convertToFrontendAmount(amountInCents);
     return NumberFormatUtils.format(BaseLocaleListener.getPreferredLocale(), convertedAmount, {
         style: 'currency',
         currency,
+
+        // We are forcing the number of decimals because we override the default number of decimals in the backend for RSD
+        // See: https://github.com/Expensify/PHP-Libs/pull/834
+        minimumFractionDigits: currency === 'RSD' ? getCurrencyDecimals(currency) : undefined,
     });
 }
 
-export {getCurrencyDecimals, getCurrencyUnit, getLocalizedCurrencySymbol, isCurrencySymbolLTR, convertToSmallestUnit, convertToWholeUnit, convertToDisplayString};
+export {getCurrencyDecimals, getCurrencyUnit, getLocalizedCurrencySymbol, isCurrencySymbolLTR, convertToBackendAmount, convertToFrontendAmount, convertToDisplayString};
diff --git a/src/libs/IOUUtils.js b/src/libs/IOUUtils.js
index 241baf26c998..91e3b09a587c 100644
--- a/src/libs/IOUUtils.js
+++ b/src/libs/IOUUtils.js
@@ -1,25 +1,31 @@
 import _ from 'underscore';
 import CONST from '../CONST';
 import * as ReportActionsUtils from './ReportActionsUtils';
+import * as CurrencyUtils from './CurrencyUtils';
 
 /**
  * Calculates the amount per user given a list of participants
  *
  * @param {Number} numberOfParticipants - Number of participants in the chat. It should not include the current user.
- * @param {Number} total - IOU total amount in the smallest units of the currency
+ * @param {Number} total - IOU total amount in backend format (cents, no matter the currency)
+ * @param {String} currency - This is used to know how many decimal places are valid to use when splitting the total
  * @param {Boolean} isDefaultUser - Whether we are calculating the amount for the current user
  * @returns {Number}
  */
-function calculateAmount(numberOfParticipants, total, isDefaultUser = false) {
+function calculateAmount(numberOfParticipants, total, currency, isDefaultUser = false) {
+    // Since the backend can maximum store 2 decimal places, any currency with more than 2 decimals
+    // has to be capped to 2 decimal places
+    const currencyUnit = Math.min(100, CurrencyUtils.getCurrencyUnit(currency));
+    const totalInCurrencySubunit = Math.round((total / 100) * currencyUnit);
     const totalParticipants = numberOfParticipants + 1;
-    const amountPerPerson = Math.round(total / totalParticipants);
+    const amountPerPerson = Math.round(totalInCurrencySubunit / totalParticipants);
     let finalAmount = amountPerPerson;
     if (isDefaultUser) {
         const sumAmount = amountPerPerson * totalParticipants;
-        const difference = total - sumAmount;
-        finalAmount = total !== sumAmount ? amountPerPerson + difference : amountPerPerson;
+        const difference = totalInCurrencySubunit - sumAmount;
+        finalAmount = totalInCurrencySubunit !== sumAmount ? amountPerPerson + difference : amountPerPerson;
     }
-    return finalAmount;
+    return Math.round((finalAmount * 100) / currencyUnit);
 }
 
 /**
diff --git a/src/libs/ReportUtils.js b/src/libs/ReportUtils.js
index 0b5158e49f88..745d76ef2b9e 100644
--- a/src/libs/ReportUtils.js
+++ b/src/libs/ReportUtils.js
@@ -12,7 +12,6 @@ import * as Expensicons from '../components/Icon/Expensicons';
 import Navigation from './Navigation/Navigation';
 import ROUTES from '../ROUTES';
 import * as NumberUtils from './NumberUtils';
-import * as NumberFormatUtils from './NumberFormatUtils';
 import * as ReportActionsUtils from './ReportActionsUtils';
 import * as TransactionUtils from './TransactionUtils';
 import Permissions from './Permissions';
@@ -41,17 +40,6 @@ Onyx.connect({
     },
 });
 
-let preferredLocale = CONST.LOCALES.DEFAULT;
-Onyx.connect({
-    key: ONYXKEYS.NVP_PREFERRED_LOCALE,
-    callback: (val) => {
-        if (!val) {
-            return;
-        }
-        preferredLocale = val;
-    },
-});
-
 let allPersonalDetails;
 let currentUserPersonalDetails;
 Onyx.connect({
@@ -1811,8 +1799,7 @@ function buildOptimisticExpenseReport(chatReportID, policyID, payeeAccountID, to
  * @returns {Array}
  */
 function getIOUReportActionMessage(type, total, comment, currency, paymentType = '', isSettlingUp = false) {
-    const currencyUnit = CurrencyUtils.getCurrencyUnit(currency);
-    const amount = NumberFormatUtils.format(preferredLocale, Math.abs(total) / currencyUnit, {style: 'currency', currency});
+    const amount = CurrencyUtils.convertToDisplayString(total, currency);
     let paymentMethodMessage;
     switch (paymentType) {
         case CONST.IOU.PAYMENT_TYPE.ELSEWHERE:
diff --git a/src/libs/actions/IOU.js b/src/libs/actions/IOU.js
index b15a897bb4aa..18d282c7ca5d 100644
--- a/src/libs/actions/IOU.js
+++ b/src/libs/actions/IOU.js
@@ -590,8 +590,8 @@ function createSplitsAndOnyxData(participants, currentUserLogin, currentUserAcco
     }
 
     // Loop through participants creating individual chats, iouReports and reportActionIDs as needed
-    const splitAmount = IOUUtils.calculateAmount(participants.length, amount, false);
-    const splits = [{email: currentUserEmail, accountID: currentUserAccountID, amount: IOUUtils.calculateAmount(participants.length, amount, true)}];
+    const splitAmount = IOUUtils.calculateAmount(participants.length, amount, currency, false);
+    const splits = [{email: currentUserEmail, accountID: currentUserAccountID, amount: IOUUtils.calculateAmount(participants.length, amount, currency, true)}];
 
     const hasMultipleParticipants = participants.length > 1;
     _.each(participants, (participant) => {
@@ -1094,8 +1094,7 @@ function deleteMoneyRequest(transactionID, reportAction, isSingleTransactionView
  * @returns {String}
  */
 function buildPayPalPaymentUrl(amount, submitterPayPalMeAddress, currency) {
-    const currencyUnit = CurrencyUtils.getCurrencyUnit(currency);
-    return `https://paypal.me/${submitterPayPalMeAddress}/${Math.abs(amount) / currencyUnit}${currency}`;
+    return `https://paypal.me/${submitterPayPalMeAddress}/${Math.abs(amount) / 100}${currency}`;
 }
 
 /**
diff --git a/src/pages/EditRequestPage.js b/src/pages/EditRequestPage.js
index 971ad056ae7e..9be8aa2580c6 100644
--- a/src/pages/EditRequestPage.js
+++ b/src/pages/EditRequestPage.js
@@ -94,7 +94,7 @@ function EditRequestPage({report, route}) {
                 defaultCurrency={transactionCurrency}
                 reportID={report.reportID}
                 onSubmit={(transactionChanges) => {
-                    const amount = CurrencyUtils.convertToSmallestUnit(transactionCurrency, Number.parseFloat(transactionChanges));
+                    const amount = CurrencyUtils.convertToBackendAmount(transactionCurrency, Number.parseFloat(transactionChanges));
                     // In case the amount hasn't been changed, do not make the API request.
                     if (amount === transactionAmount) {
                         Navigation.dismissModal();
diff --git a/src/pages/iou/steps/MoneyRequestAmountForm.js b/src/pages/iou/steps/MoneyRequestAmountForm.js
index 6ba85f100070..c5fe3e269fd8 100644
--- a/src/pages/iou/steps/MoneyRequestAmountForm.js
+++ b/src/pages/iou/steps/MoneyRequestAmountForm.js
@@ -66,7 +66,7 @@ function MoneyRequestAmountForm({amount, currency, isEditing, forwardedRef, onCu
 
     const textInput = useRef(null);
 
-    const selectedAmountAsString = amount ? CurrencyUtils.convertToWholeUnit(currency, amount).toString() : '';
+    const selectedAmountAsString = amount ? CurrencyUtils.convertToFrontendAmount(amount).toString() : '';
 
     const [currentAmount, setCurrentAmount] = useState(selectedAmountAsString);
     const [shouldUpdateSelection, setShouldUpdateSelection] = useState(true);
@@ -100,7 +100,7 @@ function MoneyRequestAmountForm({amount, currency, isEditing, forwardedRef, onCu
         if (!currency || !amount) {
             return;
         }
-        const amountAsStringForState = CurrencyUtils.convertToWholeUnit(currency, amount).toString();
+        const amountAsStringForState = CurrencyUtils.convertToFrontendAmount(amount).toString();
         setCurrentAmount(amountAsStringForState);
         setSelection({
             start: amountAsStringForState.length,
diff --git a/src/pages/iou/steps/NewRequestAmountPage.js b/src/pages/iou/steps/NewRequestAmountPage.js
index 29f5baa173b4..a10d15845c76 100644
--- a/src/pages/iou/steps/NewRequestAmountPage.js
+++ b/src/pages/iou/steps/NewRequestAmountPage.js
@@ -145,7 +145,7 @@ function NewRequestAmountPage({route, iou, report}) {
     };
 
     const navigateToNextPage = (currentAmount) => {
-        const amountInSmallestCurrencyUnits = CurrencyUtils.convertToSmallestUnit(currency, Number.parseFloat(currentAmount));
+        const amountInSmallestCurrencyUnits = CurrencyUtils.convertToBackendAmount(Number.parseFloat(currentAmount));
         IOU.setMoneyRequestAmount(amountInSmallestCurrencyUnits);
         IOU.setMoneyRequestCurrency(currency);
 
diff --git a/tests/unit/CurrencyUtilsTest.js b/tests/unit/CurrencyUtilsTest.js
index 937bf95044cf..5058c56bfa00 100644
--- a/tests/unit/CurrencyUtilsTest.js
+++ b/tests/unit/CurrencyUtilsTest.js
@@ -63,6 +63,7 @@ describe('CurrencyUtils', () => {
         test('Currency decimals smaller than or equal 2', () => {
             expect(CurrencyUtils.getCurrencyDecimals('JPY')).toBe(0);
             expect(CurrencyUtils.getCurrencyDecimals('USD')).toBe(2);
+            expect(CurrencyUtils.getCurrencyDecimals('RSD')).toBe(2);
         });
 
         test('Currency decimals larger than 2 should return 2', () => {
@@ -85,36 +86,36 @@ describe('CurrencyUtils', () => {
         });
     });
 
-    describe('convertToSmallestUnit', () => {
+    describe('convertToBackendAmount', () => {
         test.each([
-            [CONST.CURRENCY.USD, 25, 2500],
-            [CONST.CURRENCY.USD, 25.25, 2525],
-            [CONST.CURRENCY.USD, 25.5, 2550],
-            [CONST.CURRENCY.USD, 2500, 250000],
-            [CONST.CURRENCY.USD, 80.6, 8060],
-            [CONST.CURRENCY.USD, 80.9, 8090],
-            [CONST.CURRENCY.USD, 80.99, 8099],
-            ['JPY', 25, 25],
-            ['JPY', 25.25, 25],
-            ['JPY', 25.5, 26],
-            ['JPY', 2500, 2500],
-            ['JPY', 80.6, 81],
-            ['JPY', 80.9, 81],
-            ['JPY', 80.99, 81],
-        ])('Correctly converts %s to amount in smallest units', (currency, amount, expectedResult) => {
-            expect(CurrencyUtils.convertToSmallestUnit(currency, amount)).toBe(expectedResult);
+            [25, 2500],
+            [25.25, 2525],
+            [25.5, 2550],
+            [2500, 250000],
+            [80.6, 8060],
+            [80.9, 8090],
+            [80.99, 8099],
+            [25, 2500],
+            [25.25, 2525],
+            [25.5, 2550],
+            [2500, 250000],
+            [80.6, 8060],
+            [80.9, 8090],
+            [80.99, 8099],
+        ])('Correctly converts %s to amount in cents (subunit) handled in backend', (amount, expectedResult) => {
+            expect(CurrencyUtils.convertToBackendAmount(amount)).toBe(expectedResult);
         });
     });
 
-    describe('convertToWholeUnit', () => {
+    describe('convertToFrontendAmount', () => {
         test.each([
-            [CONST.CURRENCY.USD, 2500, 25],
-            [CONST.CURRENCY.USD, 2550, 25.5],
-            ['JPY', 25, 25],
-            ['JPY', 2500, 2500],
-            ['JPY', 25.5, 25],
-        ])('Correctly converts %s to amount in whole units', (currency, amount, expectedResult) => {
-            expect(CurrencyUtils.convertToWholeUnit(currency, amount)).toBe(expectedResult);
+            [2500, 25],
+            [2550, 25.5],
+            [25, 0.25],
+            [2500, 25],
+            [2500.5, 25], // The backend should never send a decimal .5 value
+        ])('Correctly converts %s to amount in units handled in frontend', (amount, expectedResult) => {
+            expect(CurrencyUtils.convertToFrontendAmount(amount)).toBe(expectedResult);
         });
     });
 
@@ -124,9 +125,13 @@ describe('CurrencyUtils', () => {
             [CONST.CURRENCY.USD, 2500, '$25.00'],
             [CONST.CURRENCY.USD, 150, '$1.50'],
             [CONST.CURRENCY.USD, 250000, '$2,500.00'],
-            ['JPY', 25, '¥25'],
-            ['JPY', 2500, '¥2,500'],
-            ['JPY', 25.5, '¥25'],
+            ['JPY', 2500, '¥25'],
+            ['JPY', 250000, '¥2,500'],
+            ['JPY', 2500.5, '¥25'],
+            ['RSD', 100, 'RSD\xa01.00'],
+            ['RSD', 145, 'RSD\xa01.45'],
+            ['BHD', 12345, 'BHD\xa0123.450'],
+            ['BHD', 1, 'BHD\xa00.010'],
         ])('Correctly displays %s', (currency, amount, expectedResult) => {
             expect(CurrencyUtils.convertToDisplayString(amount, currency)).toBe(expectedResult);
         });
diff --git a/tests/unit/IOUUtilsTest.js b/tests/unit/IOUUtilsTest.js
index 1fa7974e762d..0d40ee87424c 100644
--- a/tests/unit/IOUUtilsTest.js
+++ b/tests/unit/IOUUtilsTest.js
@@ -138,20 +138,52 @@ describe('IOUUtils', () => {
 
         test('103 JPY split among 3 participants including the default user should be [35, 34, 34]', () => {
             const participantsAccountIDs = [100, 101];
-            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 103, true)).toBe(35);
-            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 103)).toBe(34);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 10300, 'JPY', true)).toBe(3500);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 10300, 'JPY')).toBe(3400);
+        });
+
+        test('103 USD split among 3 participants including the default user should be [34.34, 34.33, 34.33]', () => {
+            const participantsAccountIDs = [100, 101];
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 10300, 'USD', true)).toBe(3434);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 10300, 'USD')).toBe(3433);
         });
 
         test('10 AFN split among 4 participants including the default user should be [1, 3, 3, 3]', () => {
             const participantsAccountIDs = [100, 101, 102];
-            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 10, true)).toBe(1);
-            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 10)).toBe(3);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 1000, 'AFN', true)).toBe(100);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 1000, 'AFN')).toBe(300);
+        });
+
+        test('10.12 USD split among 4 participants including the default user should be [2.53, 2.53, 2.53, 2.53]', () => {
+            const participantsAccountIDs = [100, 101, 102];
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 1012, 'USD', true)).toBe(253);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 1012, 'USD')).toBe(253);
+        });
+
+        test('10.12 USD split among 3 participants including the default user should be [3.38, 3.37, 3.37]', () => {
+            const participantsAccountIDs = [100, 102];
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 1012, 'USD', true)).toBe(338);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 1012, 'USD')).toBe(337);
         });
 
-        test('0.02 USD split among 4 participants including the default user should be [-1, 1, 1, 1]', () => {
+        test('0.02 USD split among 4 participants including the default user should be [-0.01, 0.01, 0.01, 0.01]', () => {
             const participantsAccountIDs = [100, 101, 102];
-            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 2, true)).toBe(-1);
-            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 2)).toBe(1);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 2, 'USD', true)).toBe(-1);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 2, 'USD')).toBe(1);
+        });
+
+        test('1 RSD split among 3 participants including the default user should be [0.34, 0.33, 0.33]', () => {
+            // RSD is a special case that we forced to have 2 decimals
+            const participantsAccountIDs = [100, 101];
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 100, 'RSD', true)).toBe(34);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 100, 'RSD')).toBe(33);
+        });
+
+        test('1 BHD split among 3 participants including the default user should be [0.34, 0.33, 0.33]', () => {
+            // BHD has 3 decimal places, but it still produces parts with only 2 decimal places because of a backend limitation
+            const participantsAccountIDs = [100, 101];
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 100, 'BHD', true)).toBe(34);
+            expect(IOUUtils.calculateAmount(participantsAccountIDs.length, 100, 'BHD')).toBe(33);
         });
     });
 });
diff --git a/tests/unit/currencyList.json b/tests/unit/currencyList.json
index 1242509c0813..d3659d9b1370 100644
--- a/tests/unit/currencyList.json
+++ b/tests/unit/currencyList.json
@@ -622,7 +622,6 @@
     "RSD": {
         "symbol": "РСД",
         "name": "Serbian Dinar",
-        "decimals": 0,
         "ISO4217": "941"
     },
     "RUB": {