Serbian Dinar

Overview

The Dinar is the foreign currency used in Serbia since the disintegration of the Federal Republic of Yugoslavia in 2003. Earlier versions of the Serbian Dinar existed prior to World War I and during German occupation in World War II. The earliest use of the term Dinar dates back to 1214.

Economy

• Serbia’s GDP of ~US$11,079 (PPP) makes it one of the smaller economies in Europe, though globally it is considered an upper-middle economy. GDP Growth has been strong in recent years; its ~8.7% GDP growth in 2008 put Serbia amongst the fastest growing economies in the region.
• Serbia’s rate of unemployment is quite high, reaching 23.7% in February 2012.
• Serbia has a very large trade deficit. Being a landlocked country with very limited natural resources, most necessities are imported from neighboring countries. Serbia has free trade agreements with the European Union, Russia, and Belarus.
• Raspberries are one of the largest exports for the country. Serbia grows and provides nearly 1/3 of the world’s raspberries.
• Serbia is an associate member of the EU.

History

• The first mention of a Serbian Dinar is connected with the reign of Stefan Nemanjić in 1214. Serbian Dinar coins were minted by many of the rulers in the region until the fall of Stefan Lazarević in 1459.
• For the next few centuries, several varying currencies were used in the the Serbian area. The first modern Serbian Dinar coins were minted in 1868, and the first Dinar banknotes were issued in 1876.
• In 1920, following World War I, the Serbian Dinar was replaced by the Yugoslav Dinar (at par).
• Following the German occupation of Yugoslavia, the region was again split into Serbia and Montenegro. At this time, the Yugoslav Dinar was replaced by the Serbian Dinar in 1941, at a rate of 1 Yugoslav Dinar = 20 Serbian Dinars.
• In 1944, the reconstitution of Yugoslavia occurred and the Serbian Dinar was again replaced by the Yugoslav Dinar at the same rate of 1 Yugoslav Dinar = 20 Serbian Dinars.
• In 2003, following the final dissolution of Yugoslavia, the Serbian Dinar became the official currency of Serbia, replacing the Yugoslav Dinar at par.