The Exchange Of Austrian Crowns For Dinars In 1920 Cover Image

Zamena austrijskih kruna za dinare 1920. godine
The Exchange Of Austrian Crowns For Dinars In 1920

Author(s): Boško Mijatović
Subject(s): History
Published by: Institut za savremenu istoriju, Beograd

Summary/Abstract: Upon the formation of Yugoslavia it was necessary to withdraw several foreign currencies circulating in the country in order to achieve monetary sovereignty and stability. This issue was politically sensitive because the exchange of currencies meant (re)distribution of purchasing power to provinces and nations. The process of replacing Austrian crown notes with dinars started in February of 1920. The exchange rate was 4 crowns for 1 Serbian dinar, which was reasonable due to the higher purchasing power of the dinar against the crown, the prevailing market exchange rate, large dinar’s metallic reserves compared to the crown and because of the need to compensate dinar’s region for the expropriate exchange rate applied by the Austro-Hungarian government during theWar. The currency exchange had positive effects. The results were more beneficial for those using crowns in Yugoslavia than in Austria or Hungary. There was a great economic conjuncture in the country. The exchange rateof the new Yugoslav Dinar immediately increased significantly, and the unification did not bring an influx of inferior Crowns from adjacent regions and thus Yugoslavia preserved its scarce capital.

  • Issue Year: 2014
  • Issue No: 1
  • Page Range: 27-50
  • Page Count: 24
  • Language: Serbian