The Yugoslav dinar (YUM) was the official currency of three Yugoslav states: the Kingdom of Yugoslavia (1929-1946), the Socialist Federal Republic of Yugoslavia (1946-1992), and the Federal Republic of Yugoslavia (1992-2006). Yugoslavia expanded its territory during the war, and it eventually divided into six republics: Serbia, Croatia, Slovenia, Montenegro, Bosnia & Herzegovina, and North Macedonia. The Yugoslav dinar was issued between 1918 and 2003.
One dinar was divided into 100 para. It went through many revaluations, with five occurring between 1990 and 1994. Six of these eight iterations of the dinar have their own separate ISO code and distinguishable name. These are: the Federation dinar (1945-1965), the hard dinar (YUD, 1966-1989), the convertible dinar (YUN, 1990-1992), the reformed dinar (YUR, July 1992-September 1993), the October dinar (YOU, October-December 1993), the 1994 dinar, and the novi dinar (YUM, 1994-2003). The Yugoslav dinar was replaced by the Serbian dinar after Yugoslavia became Serbia.
The National Bank of Yugoslavia was in charge of issuing and circulating the Yugoslav dinar banknotes and coins. It was established as the Privileged National Bank of the Kingdom of Serbia in 1884 and was modeled after the National Bank of Belgium. After the First World War, the bank was renamed the National Bank of Yugoslavia.
Revaluation After Revaliation
The Federation dinar replaced the Serbian dinar and the Croatian kuna in 1945 at a rate of 1 Yugoslav dinar to 20 Serbian dinars to 40 Croatian kunas. The dinar was originally pegged to the US dollar at a rate of 50 dinars to 1 dollar. However, the dinar had a system of multiple exchange rates. The system devalued the dinar that it was abolished in 1961 and replaced it with a single pegged rate of 750 dinars to 1 US dollar.
In 1966, the dinar was revalued at a rate of 100 to 1. This revalued dinar was called the hard dinar (YUD). The hard dinar was initially pegged at a rate of 12.5 dinars to 1 dollar, but it depreciated in value. After the Nixon Shock, Yugoslavia adopted a market exchange rate system so that the dinar could float freely. However, it was poorly managed and Yugoslavia experienced a wave of inflations.
Hyperinflation on the rise
Another revaluation happened in 1990 at a rate of 10,000 to 1. From 1991 to 1992, four constituent republics left Yugoslavia and also declared independence: Slovenia, Croatia, North Macedonia, and Bosnia & Herzegovina. These newly-established countries had their own currencies so the Yugoslav dinar was convertible to the new currencies at par.
From July 1992 to September 1993, the National Bank of Yugoslavia revalued the convertible dinar. This revalued currency was named the reformed dinar (YUR). This reformed dinar did not last long as the country began to experience hyperinflation during its circulation. People in Yugoslavia started using other currencies like the Deutschmark to mitigate hyperinflation.
In the remaining months of 1993, the dinar was revalued for the fourth time at a rate of 1 million to 1. The 1993 dinar (YOU) was also depreciated to the point that coins became redundant and the National Bank issued the largest denomination in Yugoslavia: the 500 billion dinars.
A year later, the dinar was revaluated at a rate of 1 billion to 1. The 1994 dinar (YUG) was short-lived, only circulating from January 1 to January 24, 1994.
The end of the Yugoslavia Dinar
After the 1994 dinar, the National Bank of Yugoslavia started issuing the novi dinar (YUM). The novi dinar was not a revaluation of the dinar. Instead, it was pegged at par to the Deutsche Mark. At that point, the novi dinar was equivalent to 12 to 13 million 1994 dinars. Five years later in 1999, Montenegro decided that both the Yugoslav dinar and the Deutsche Mark would be its official currency. In addition, in November 2000, Montenegro dropped the dinar. The “novi” also ceased to exist in the same year.
In 2003, Yugoslavia became the State Union of Serbia and Montenegro. The Yugoslav dinar was finally replaced by the Serbian dinar at par.