Yugoslav krone

Yugoslav krone

крyна/kruna (Serbo-Croatian), krona (Slovene)
Overprinted 400 krone on 100 dinar note
Demographics
Date of introduction	December 1918
Date of withdrawal	1922
User(s)	Kingdom of Serbs, Croats and Slovenes
Issuance
Central bank	National Bank of the Kingdom of Serbs, Croats and Slovenes
This infobox shows the latest status before this currency was rendered obsolete.

The Yugoslav krone (Serbo-Croatian: крyна / kruna; Slovene: krona) was a short-lived, provisional currency used in territories of the newly formed Kingdom of Serbs, Croats, and Slovenes (KSCS, later renamed Yugoslavia), which had previously been part of Austria-Hungary. The currency was first issued in 1919 in the form of rubber-stamped and tagged Austro-Hungarian krone notes. In 1920, to allow the exchange of Austro-Hungarian krone and Serbian dinar notes for the new KSCS dinar, provisional, dual KSCS dinar-krone banknotes were issued with the krone value overprinted. By 1 January 1923, the provisional notes were withdrawn from circulation and replaced with notes denominated only in dinars. The Yugoslav krone's official value was one half of a Serbian dinar at its introduction and one quarter of a Serbian dinar or KSCS dinar at its withdrawal from circulation.

The decision for the KSCS to have its own Austro-Hungarian krone notes was taken to separate KSCS fiscally from other Austro-Hungarian successor states and protect the KSCS market from inflationary pressures caused by printing of krone notes abroad. In order to achieve the separation of the currency in circulation in the former Austro-Hungarian territories belonging to the KSCS from identical Austro-Hungarian krone notes in circulation in other former Austro-Hungarian territories, each note was marked by application of a rubber stamp. The stamped currency notes were also later tagged using adhesive stamps. The KSCS government withheld twenty per cent of the notes submitted for tagging as a compulsory loan to the state.

Replacement of the currency caused a persisting controversy. Serbian sources say the exchange krone at the rate of four to one Yugoslav dinar, while the Serbian dinar was simultaneously exchanged for the new Yugoslav currency at par caused no adverse effects, but Croatian historians and public perception portray the exchange rate as unjust and claim that the scheme channelled wealth to non-Serbian areas of the KSCS.