What is the Currency of Serbia?

By Andrew Mwaniki on October 27 2017 in Economics

The current Serbian diner has been in use sine 2003.

Serbia is a southeastern European country that borders Hungary to the north, Romania and Bulgaria to the east, Macedonia to the south, and Montenegro, Bosnia and Croatia to the west. The currency of Serbia is the Serbian dinar.

History of the Serbian Dinar

Medieval Dinar

The most notable early use of the Serbian dinar was recorded in 1214 during Stefan's reign. Minted silver dinar coins were used until 1459 when the empire of Stjepan came to an end. The Serbian currency dinar was minted from silver and was an important tool of trade during the medieval times. Most Serbian rulers commissioned the mint of silver coins that were a replica of the Venetian Grosso and included Latin characters. The ubiquity of silver in the Serbian mines made the dinar coins important export articles and helped facilitate trade between Serbia and other European nations.

First Modern Dinar

The first modern currency was used between 1868-1920. After the Ottoman conquest, multiple foreign currencies were used in Serbia with various coin mints located across the country in towns such as Novo Brdo and Belgrade. The dinar was also subdivided into 'para' which is a name derived from Turkish meaning 'money coin'. During the establishment of the Principality of Serbia in 1817 multiple foreign currencies remained in circulation, but this was later regulated by Prince Milos Obrenovic. He introduced exchange rates chiefly based on the Serbian gros as the standard currency. In 1867, Serbian authorities ordered for the minting of a national currency. The first coins were made using bronze in 1868, while silver and gold coins were introduced in 1875 and 1879 respectively. The Serbian dinar was replaced by the Yogoslav dinner and Yugoslav krone in 1920.

Second Modern Dinar

The invasions by the Germans in parts of Serbia in 1941 allowed the extensive use of the Serbian currency. This was later changed with the Yugoslav currency which was in circulation until 1944.

Third Modern Dinar

In 2003, the Serbian dinar replaced the Yugoslav dinar. The third modern dinar includes 1-, 2-, 5-, 10-, and 20-dinar coins featuring identical Serbian scripts. The National Bank of Serbia also introduced various denominations of banknotes in 2003, including 100-dinar, 1,000-dinar, and 5,000-dinar notes, as well as a 500-dinar note in 2004, 50-dinar note in 2005, 10- and 20-dinar notes in 2006, and a 2,000-dinar note in 2011. The 10- and 20-dinar notes have essentially rendered the 10- and 20-dinar coins useless, and while the coins can still be found in circulation, they are now quite uncommon.

The coins and banknotes of the third modern dinar has remained the currency of Serbia, known as the Serbian dinar, until this day.

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