Old Yugoslavia banknotes. The Dinar was a currency used in the three Yugoslav states. The Kingdom of Yugoslavia, the Socialist Federal Republic of Yugoslavia, and the Federal Republic of Yugoslavia, between 1920 and 2003. Also the Dinar was subdivided into 100 para.
During the dismemberment of Yugoslavia, the currency suffered a very strong devaluation, as well as its economy. The Dinar used the code YUD.
Why this happened?
Until 1918, the Dinar had been the currency of the Kingdom of Serbia. Certainly After the end of the First World War and the creation of the Kingdom of Serbs, Croats, and Slovenes. The new state adopted it as its currency. Initially, the Yugoslav Krona was in circulation, but in 1920, it was replaced by the new Yugoslav Dinar.
The Dinar briefly disappeared with the occupation of Yugoslavia (1941-45) during World War II, as it was replaced by other foreign currencies, such as the German Reichsmark, the Italian lira, or the Bulgarian lev. In occupied Serbia, the old Serbian Dinar returned to circulation.
In the Independent State of Croatia, the adopted currency was the kuna.
With the defeat and German withdrawal in 1944-1945, the circulation of the Yugoslav Dinar was reinstated.
The late 1980s and early 1990s saw severe and prolonged hyperinflation2 due to a combination of economic mismanagement, the Yugoslav wars, and high crime. During this period, which coincided with the breakup of Yugoslavia, large amounts of money were printed, and, as a result, the currency lost its value. The highest value banknote issued was 500,000,000,000 dinars. So, this hyperinflation caused five revaluations between 1990 and 1994; in total, eight different types of Dinar came into existence.
The disappearance of Yugoslavia also meant the end of the Dinar and its replacement by other currencies in each independent republic.
The time when Yugoslav Dinar was the first convertible currency in Eastern Europe.
The Yugoslav Dinar was convertible in 1989 and became the national currency of Eastern Europe. In addition, citizens were able to freely buy any currency. This and other radical economic measures were proposed by Prime Minister Ante Markovic before the Belgrade Parliament.
In the 52-page speech, Markovic laid out the economic program for 1990, designed to lower inflation and create the conditions for the creation of a free market.
The basis of the proposal consisted of three points: convertibility of the Dinar and its fixed parity for six months with the German mark and the dollar (at the beginning of the year, four zeros were deleted from the denominations of the Dinar); with the end of the centralization of the economic power of the Government and the independence of the Yugoslav Central Bank.
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