Updated: Mar 13, 2022
This Yugoslavian banknote represents the 2nd denomination of the “Convertible Dinar” (Series 1991). A product of final years of the Socialist Federal Republic of Yugoslavia. The Convertible Dinar also briefly served as the currency of Federal Republic of Yugoslavia. A union of the republics of Serbia and Montenegro, which formed after the dissolution of the SFR Yugoslavia, in 1992.
The Convertible Dinar set the monetary basis, that preluded the dissolution of the SFR Yugoslavia. As well as the initial currency of the period of independence wars and ethnic conflicts, known as the Yugoslav Wars. On 1 July 1992, the Convertible Dinar was replaced the "Reformed Dinar". Due to hyperinflation, which caused by the conflict. (SEE: A Brief History of The Convertible Dinar)
The observe features a portrait of young man, representing the nation's youth. This is the 2nd variant of this portrait. The first appeared as the 1990 Series 500 Dinara. Although with an blue and indigo color scheme. This same observe portrait was reused in the "Reformed Dinar" (Series 1992/93).
Besides the portrait is the 1963 Emblem of SFR Yugoslavia, featuring 6 torches. These torches are a metaphor for the 6 republics of SFR Yugoslavia. Above is multilingual text in Serbian, Croatian, and Macedonia. All which translates to "National Bank of Yugoslavia". The 4th/5th letters of this text aligns with a faintly visible security tread.
Below the SFR Emblem is a large number "500" and quad text, stating the notes 500 Dinara face value. An additional vertical number "500" can be seen, at the left of the portrait. Toward the note's right is the watermark area. It features a mirrored image of the note's portrait.
At the top of this watermark area is a number "500", on a decorative "beaded" design. Notably the shape of this design varies, based on the note's portrait. To the far right is vertical text in Serbian and Croatian, it translates to "Forgery is punishable by law", a warning to counterfeiters. Below is the note's serial number "AE 9841129".
The reverse features an illustration of the Kopaonik Mountains, along the Serbian-Bosnian border. In 1981, SFR Yugoslavia declared the mountains as a national park. Within the same year, the International Ski Federation recognized the Kopaonik Ski Resort, as an international ski center. The mountain was also was extensively studied by the Serbian botanist Josif Pančić (1814-1888).
Just as the observe, the reverse features dual Serbian and Croatian text. Above the illustration the text simply translates to "SFR Yugoslavia". While below is a large "500" and additional text, representing the note's "Five Hundred Dinara" value. Printed in Serbian, Croatian, Slovenian, and Macedonian.
The reverse watermark area features Slovenian and Macedonian text, on its counterfeit warning. The number "500" backing now has an added "arrow" shape below. The serial number has been replaced by the text in all 4 national languages. With signatures, representing the Bank Governor and Deputy Governor. The text below states this note was printed in 1991, at the city of Belgrade (Beograd).
At the note's footer is fine text, it reads "Narodna Banka Jugoslavije-Zavod Za Izradu Novčanica I Kovanog Novca-Beograd". The center section represents the note's printer, commonly known a ZIN. The last section refers to Belgrade, were ZIN is headquartered. While the first section refers to the notes being approved by the National Bank of Yugoslavia.
A Brief History of the Convertible Dinar
To fully understand the history "Convertible Dinar", requires understanding the period which preceded it. Namely the death of Yugoslav President Josip Broz Tito (1892-1980). Who death due to complications during surgery. Lead to a leadership power vacuum, that worsen an already poor situation. From 1981 onward, the Yugoslavia Dinar was plagued by rapid inflation.
Even before the death of Tito, attempts were made stabilize Yugoslavia Dinar. As Yugoslavia under the post-WWII Federation Dinar, used an overtly complicated system of exchange rates. All which differed based on type and degree of government intervention. In 1961, fixed rate pegged to the US Dollar was established, allowing a relatively base to counter inflation.
The Hard Dinar (introduced on 1 January 1966) represented the 1st attempt to stabilized the Yugoslavian Dinar. Although it was plagued by a new number political events. The first being the Nixon Shock (1971), which lead to the "Hard Dinar to de-peg from the US Dollar. This was compounded by poorly managed economic policies, which lead to chronic inflation.
The Convertible Dinar was introduced 1 January 1990, as a replacement for the "Hard Dinar". It represented the 2nd attempt to counter the inflation of the Yugoslavian dinar. By revaluing Yugoslavia's currency by an impressive factor of 10,000 (Hard) to 1 (Convertible). The effort was somewhat rushed given the rapidly deteriorating situation in the SFR Yugoslavia.
Notably the notes of the Convertible Dinar utilized elements from the previous "Hard Dinar" (Series 1985). Such color-coded denomination and its basic design aesthetics. This is apparent when viewing 1st and 3rd denominations of 1990 Series. Which are simply rescaled and redenominated 100000 and 1 Million "Hard" Dinara note.
On 1 July 1992, the Convertible Dinar was replaced by the "Reformed Dinar. By this point the SFR Yugoslavia disbanded and its former republics in a state of conflict. The Reformed Dinar and its successors were issued by the Federal Republic of Yugoslavia. A joint union of the Republics of Serbia and Montenegro. Which refused to succeed from the SFR Yugoslavia.
Convertible Dinar Gallery 1991
(Gallery contains all Series 1991 banknotes, "Convertible Dinar")
This note's dimensions are 159 x 76 mm or 6.26 x 2.99 in, larger than a US Dollar.
The preferable method to preserve this note are large sized protective sleeves.
The Convertible Dinar ISO code was YUN, it used both din. and дин as symbols.
The Convertible Dinar was sub-divided into 100 Para, coins were in Para and Dinar values.
The German Deutsche Mark was used unofficially alongside the Convertible Dinar.
This banknote is based on the 100000 Dinara (1989), 11th denomination of the "Hard Dinar".
Due to inflation, the 10 Dinara and 50 Dinara notes were omitted from the 1991 series