page_title: Montenegro and the euro
section_title: Yugoslav Dinar
hierarchical_section_title: Montenegro and the euro / History / Yugoslav Dinar
caption_attribution_description: 5000 dinara iz 1985. godine, SFRJ
context_page_description: Montenegro is a country in South-Eastern Europe, which is not a member of the European Union, Eurozone nor it has a formal monetary agreement with the EU, but it is one of the two countries that has unilaterally adopted the euro in 2002 as its de facto domestic currency. This means that the euro is not a legal tender there, however it is treated as such by the government and the population.
context_section_description: After Montenegro became a part of the Socialist Federal Republic of Yugoslavia following World War II, it was bound to Yugoslav monetary policy and used the Yugoslav dinar as its official currency until 1999. After the disintegration of the SFRY, in 1992 the former member republics – Montenegro and Serbia formed the Federal Republic of Yugoslavia. In the new country, the monetary system was re-centralized, wherein the National Bank of Montenegro lost its autonomy and became a regional office of the National Bank of Yugoslavia headquartered in Belgrade.
  A high level of monetary and financial centralisation was established, which was easy to be manipulated and which enabled many misuses due to the nonexistence of any legal state and financial discipline, and this resulted in hyperinflation in the period 1992–94. After the crash of the common market and simultaneous outbreaks of war in two former Yugoslav republics, the monthly inflation rate in Serbia and Montenegro was 50% in February 1992, reaching 100% in June the same year. This caused severe and prolonged hyperinflation, which has led to a devastation of the region. The Yugoslav dinar has been considered one of the worst-performing currencies of the world.
caption: 5000 dinar banknote (1985)
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