The National Bank of Serbia does not purchase its own issues of commemorative gold or silver coins, or other gold and silver items. The advice of the National Bank of Serbia for such natural persons who want to get a better price for the gold and silver coins they posses and wish to sell is to contact the Serbian Numismatic Society (website: www.snd.org.rs, e-mail address: numiserb@yubc.net, Belgrade office telephone: 011/30 34 595 and 064/131 63 70), which meets each Tuesday at 3 p.m. in 16-18 Sveti Sava St. where they organize the numismatic stock exchange. There the seller is likely to achieve a better price than the price offered by jewellers who purchase the so-called broken gold.

It is not known to us whether any of the banks in Serbia purchases commemorative gold or silver coins and other gold and silver items. We suggest you to view links of the banks for the purpose of getting an answer to the foregoing question, by clicking the link – banke u Srbiji (banks in Serbia).

2. Where and on what conditions may natural and legal persons buy commemorative coins and vacuum packed coin sets issued by the NBY/NBS?

The National Bank of Serbia sells commemorative coins and vacuum-packed sets of circulating coins to resident and non-resident natural persons and resident legal persons at the teller’s desk in the Head Office in Belgrade, 17 Nemanjina St. and at teller units of its Belgrade, Novi Sad, Kragujevac, Niš and Užice branches.

Buyers – resident or non-resident natural persons – will at the selected point of sale be issued by the cashier a payment order as to the valuables they wish to buy, and the payment will be effected at a commercial bank. Upon presenting proof of payment, the buyer will receive the valuables, on business days 9 a.m. to 4 p.m., and will be issued a receipt by the National Bank of Serbia. For the purchased commemorative coins and vacuum-packed sets worth RSD 10,000 and more, non-resident natural persons are entitled to VAT refund within six months from the day of taking such coins or sets out of the country.

Resident legal entities are required to submit a request for purchase of commemorative coins and vacuum-packed sets of coins to the Treasury Department of the National Bank of Serbia or a relevant National Bank branch. In the request, such legal entity will specify type of the issue, set designation and quantity of money, as well as basic data on the buyer (name, address, identification number, TIN and contact telephone/fax/e-mail). The National Bank of Serbia will then submit a “notification” to the buyer, as basis for effecting the payment. Upon presenting proof of payment, an authorized person of the buyer may take over purchased commemorative coins and vacuum-packed sets of coins in the same point of sale where such coins or sets were ordered, business days from 9 a.m. until 4 p.m. For the purchased commemorative coins, the legal entity-buyer will be issued a receipt by the National Bank of Serbia.

For more information, visit website of the National Bank of Serbia www.nbs.rs, page Commemorative Coins and Vacuum Packed Coin Sets issued by NBY/NBS.

POINTS OF SALE

National Bank of Serbia, Belgrade, 17 Nemanjina St.
Telephone: +381-11/333-7687, +381-11/333-7640, +381-11/333-7642, +381-11/333-7645, +381-11/333-7634
Fax:+381-11/333-7730
E-mail: nikola.reljic@nbs.rs
nevenka.marinkovic@nbs.rs
vera.savic@nbs.rs
branka.tasic@nbs.rs

Belgrade Branch, Belgrade, 130 Ustanička St.
Telephone: +381-11/333-7936, +381-11/333-7943
Fax:+381-11/2887-670
E-mail: mirjana.radakovic@nbs.rs

Novi Sad Branch, Novi Sad, 22 Vase Stajića St.
Telephone:+381-21/4880-647, +381-21/4880-648
Fax: +381-21/4880-619
E-mail: spomenka.randjelovic@nbs.rs

Kragujevac Branch, Kragujevac, 16a Branka Radičevića St.
Telephone: +381-34/331-532
Fax: +381-34/335-260
E-mail: ljiljana.arsenijevic@nbs.rs

Niš Branch, Niš, 19 Milojka Lesjanina St.
Telephone: +381-18/506-539
Fax: +381-18/506-544
E-mail: stevan.jovanovic@nbs.rs

Užice Branch, Užice, 12 Trg partizana
Telephone: +381-31/529-321
Fax: +381-31/592-350
E-mail: milesa.gligorijevic@nbs.rs

3. Does the National Bank of Serbia assess value of the gold and silver coins from different periods and of different issuers?
As a rule, the National Bank of Serbia does not assess the value of gold and silver coins for natural persons who request this service, as the National Bank most frequently does not have direct access to such money, and each specimen can have its own specificities which cannot be subjected to a single assessment criterion – different versions of manufacturing, different time of manufacturing, degree of conservation, different circulation, manufacturing technique, metal composition, market conditions, and the like.

Money in Circulation

1. Which denominations of banknotes and coins are currently legal tender in the Republic of Serbia?

In circulation is series of banknotes issued by the National Bank of Serbia as follows: denomination of 10 dinars (issued in 2006), denomination of 20 dinars (issued in 2006), denomination of 50 dinars (issued in 2005), denomination of 100 dinars (issue of 2003, signature of the governor Mlađan Dinkić, issue of 2004, signature of the governor Radovan Jelašić, with the NBS emblem as well as issue of 2006, signature of the governor Radovan Jelašić, with coat of arms of the Republic of Serbia), denomination of 200 dinars (issued in 2005), denomination of 500 dinars (issue of 2004, signature of the governor Radovan Jelašić, with the NBS emblem as well as issue of 2007, signature of the governor Radovan Jelašić, with coat of arms of the Republic of Serbia), denomination of 1000 dinars (issue of 2003, signature of the governor Mlađan Dinkić, issue of 2003, signature of the governor Kori Udovički – both issues are with the NBS emblem and issue of 2006, signature of the governor Radovan Jelašić, with coat of arms of the Republic of Serbia) as well as denomination of 5000 dinars (issue of 2003, signature of the governor Mlađan Dinkić).

In circulation are coins issued by the National Bank of Serbia in 2003 (denomination of 1 dinar with the designation of the manufacturing year “2003” and “2004”, and denominations of 2, 5, 10 and 20 dinars with the designation of the manufacturing year “2003”), coins issued by the National Bank of Serbia in 2005 (denominations of 1 and 5 dinars with the designation of the manufacturing year “2005”, “2006”, “2007”, “2008” and “2009” and 10 dinars with the designation of the manufacturing year “2005”, “2006” and “2007”), coins issued by the National Bank of Serbia in 2006 (denomination of 2 dinars with the designation of the manufacturing year “2006”, “2007”, “2008” and “2009” and 20 dinars with the designation of the manufacturing year “2006”), coins issued by the National Bank of Serbia in 2007 (denomination of 20 dinars with the designation of the manufacturing year “2007”) and coins issued by the National Bank of Serbia in 2009 (denominations of 1 and 2 dinars made of new multi-layered material, with low carbon steel core, electrochemically plated on both sides with the basic layer of copper and the finishing layer of brass, with the designation of the manufacturing year “2009” and denominations of 10 and 20 dinars with the designation of the manufacturing year “2009”).

For more information, visit website of the National Bank of Serbia www.nbs.rs, page Banknotes and Coins – Banknotes and Coins in Circulation.

2. Are the banks and Poštanska štedionica liable to change the coins into large bills (domestic currency), is it possible and where can coins be changed into large bills and can an individual pay large amounts of coins to his current account?

Pursuant to the Decision of the National Bank of Serbia on the Manner of Managing Cash Flows by Supplying Banknotes and Coins to Banks, it is defined that banks are liable to exchange to legal and natural persons cash which is unfit for circulation (warn and damaged banknotes), as well as that they may (meaning that they don’t have to) exchange to legal and natural persons cash fit for circulation as per the denomination structure.

Furthermore, obligation of the National Bank of Serbia is to provide adequate volume, quality and denomination structure of banknotes and coins in circulation. Banks represent a link between the central bank and end users of cash and in terms of that banks take care of the structure of disbursements – uniform representation of all denominations of banknotes and coins of banks. Therefore, the National Bank of Serbia avails itself of the opportunity to point to the citizens not to “store” coins in money-boxes, drawers, ashtrays, bottles and the like, because such behaviour results in enormous quantities of coins in circulation which “get lost” in the payment system whereas on the other hand, the National Bank of Serbia gets liable to additionally manufacture coins for the purpose of meeting cash payment operations needs. Natural persons who wish to subsequently “change collected coins for large bills”, i.e. to change them for banknotes, face problems at banks which, based on the foregoing may, but don’t have to perform such transactions to citizens.

Nevertheless, coins are legal tender so, in terms of that, the banks are liable to accept payments of cash from citizens even if such payments are in large quantity of coins.

Hence, recommendation of the National Bank of Serbia is that citizens should use coins for the purpose it is manufactured for – for circulation, and if citizens wish to “get rid” of large quantities of coins in the form of payment to the current account, they may insist on that with the bank.

3. Can collectors, where and how, exchange circulating banknotes and coins for new (unused) banknotes and coins?
The replacement of circulating banknotes for unused (new) circulating banknotes and coins is performed in the NBS Head Office, Belgrade, 17 Nemanjina Street, business days from 9 a.m. until 4 p.m., Phone - 011/ 333-7687.

The fee charged for this type of service equals 10% of the face value of the banknotes being replaced or, in case of coins, 1 dinar per coin.

Money out of Circulation

1. What should one do if in the shop he is given as a change coins with designation of FR Yugoslavia, which as per the official information is not valid any further?
In case a seller gives back to a citizen change in denominations of coins which have ceased to be legal tender, notwithstanding whether deadline for subsequent replacement has expired or not should insist with the seller that he should give them change in denominations of coins which are legal tender.
2. What is the status of banknotes and coins issued by the National Bank of the former SFR Yugoslavia until 1992 and of banknotes and coins issued by the National Bank of FR Yugoslavia in 1992 and 1993 (period of hyperinflation), banknotes and coins issued by the National Bank of FR Yugoslavia in the period 1994 to 1999 as well as banknotes and coins issued by the National Bank of Yugoslavia in the period 2000 to 2002 – may natural persons who possess such banknotes and coins exchange them for circulating banknotes and coins; does the National Bank of Serbia verify the authenticity of such banknotes and does the National Bank of Serbia issue certificates for the purpose of taking such banknotes out of the country?

1.1. Banknotes and coins issued by the National Bank of SFR Yugoslavia until 1992

Generally, subject to the decisions on withdrawing from circulation, from certain period and for certain denominations of banknotes and coins, all banknotes issued by the National Bank of the former SFR Yugoslavia have been withdrawn from circulation and ceased to be legal tender, there have expired all deadlines for replacement thereof for circulating banknotes and coins as well as for conversion for some foreign currency. Information on possible numismatic value of non-circulating banknotes and coins from such period may be obtained in the numismatic market.

1.2. Banknotes issued by the National Bank of FR Yugoslavia in the period 1992 to 1993 (period of hyperinflation)
By the Decree on the New Dinar (“FRY Official Gazette”, No 6/94), there was introduced a new dinar as legal tender in the territory of the Federal Republic of Yugoslavia.

Subject to the mentioned Decree, on 24th January 1994 the National Bank of Yugoslavia put in circulation banknotes in denominations 1, 2 and 5 new dinars.

By the Decree on Amendments and Supplements to the Decree on the New Dinar (“FRY Official Gazette”, No 57/94) old dinar which had been in circulation, ceased to be legal tender as of 22nd July 1994.

By 22nd August 1994 the National Bank of Yugoslavia was performing replacement of old dinar for new dinar at the exchange rate of 12,000,000 old dinars for 1 new dinar. Ever since that day, there have ceased all obligations of the National Bank of Yugoslavia (Serbia) towards legal entities and natural persons possessing banknotes which had ceased to be legal tender and for which all deadlines had expired as to replacement, i.e. it is neither possible to do replacement of such banknotes for circulating banknotes and circulating coins, nor to do conversion for any foreign currency.

1.3. Banknotes and Coins issued by the National Bank of FR Yugoslavia in the period 1994 to 1999 (the so-called Avram’s new dinar)

In the “FRY Official Gazette”, No 61/2001 and 15/2002 there was published a Decision of the National Bank of Yugoslavia on Withdrawal from Circulation of Banknotes of 5, 10 and 20 new dinars, issued on 3rd March 1994, 50 new dinars issued in June 1996 and 100 new dinars issued in October 1996. The foregoing banknotes have ceased to be legal tender since 1st January 2002. Deadline for subsequent replacement of such banknotes expired on 31st December 2007 and ever since that time it is neither possible to do replacement of such banknotes for circulating banknotes and coins, nor to do conversion for any foreign currency.

In the “RS Official Gazette”, No 23/2003 there was published a Decision of the National Bank of Serbia on Withdrawal from Circulation of Coins in denomination of 1 para issued in 1994, 5 paras issued in 1994 and 1996 and 10 paras issued in 1994, 1995 and 1996. Mentioned denominations of coins ceased to be legal tender since 1st May 2003. Deadline for subsequent replacement of such coins expired on 30th April 2003 and ever since that time it is neither possible to do replacement of such coins for circulating banknotes and coins, nor to do conversion for any foreign currency.

In the “RS Official Gazette”, No 56/2005 there was published a Decision of the National Bank of Serbia on Withdrawal from Circulation of Coins in denomination of 50 paras issued by the National Bank of Yugoslavia in 1994, 1995 and 1996 features of which are defined by the decisions on issuance and basic features of coins in denomination of 50 paras (“FRY Official Gazette”, No 8/1994, 39/1995 and 24/1996). Mentioned denomination of coin ceased to be legal tender on 1st January 2006 and ever since that time it is neither possible to do replacement of such coins for circulating banknotes and coins, nor to do conversion for any foreign currency.

In the “RS Official Gazette”, No 61/2006 there was published Decision on Withdrawal from Circulation of Banknotes in denominations of 10, 20 and 1000 dinars and coins in denomination of 1 new dinar, issued by the National Bank of Yugoslavia, as follows:

Coins in denomination of 1 new dinar, with designated years of minting “1994” and “1995”, features of which were defined by the Decision on Issuance and Basic Features of Coins in denomination of 1 new dinar (“FRY Official Gazette”, No 8/1994) and which had been in circulation since January 24, 1994;
Coins in denomination of 1 new dinar, with designated years of minting “1996” and “1999”, features of which were defined by the Decision on Issuance and Basic Features of Coins in denomination of 1 new dinar (“FRY Official Gazette”, No 24/1996) and which had been in circulation since January 10, 1996;
Mentioned denominations of coins have not been legal tender since January 1, 2007. From January 1, 2008 until December 31, 2012 it is possible to perform subsequent replacement of such denomination of coins in the branches of the National Bank of Serbia in Belgrade, Novi Sad, Kragujevac, Niš and Užice.

1.4. Banknotes and coins issued by the National Bank of Yugoslavia in the period 2000 to 2002

In the “RS Official Gazette”, No 61/2006 and 122/2007 there was published the Decision on Withdrawal from Circulation of Banknotes in denomination of 5000 dinars issued in 2002 by the National Bank of Yugoslavia, features of which were defined by the Decision on Issuance and Basic Features of Banknotes in denomination of 5000 dinars (“FRY Official Gazette”, No 45/2002) and which had been in circulation since August 21, 2002. The mentioned denomination of the banknote ceased to be legal tender on March 1, 2006.
In the “RS Official Gazette”, No 61/2006 and 122/2007 there was published the Decision on Withdrawal from Circulation of Banknotes in denomination of 10, 20 and 1000 dinars and coins in denomination of 1 new dinar, issued by the National Bank of Yugoslavia, features of which were defined by:

Decision on Issuance and Basic Features of the Banknote in denomination of 10 dinars (“FRY Official Gazette”, No 24/2001) and which had been in circulation since May 31, 2001.
Decision on Issuance and Basic Features of the Banknote in denomination of 20 dinars (“FRY Official Gazette”, No 70/2000) and which had been in circulation since December 15, 2000.
Decision on Issuance and Basic Features of the Banknote in denomination of 1000 dinars (“FRY Official Gazette”, No 50/2001) and which had been in circulation since September 20, 2001.

Mentioned denominations of the banknotes ceased to be legal tender on January 1, 2007.

In the “RS Official Gazette”, No 23/2006 and 122/2007 there was published the Decision on Withdrawal from Circulation of Banknotes in denomination of 50, 100 and 200 dinars issued by the National Bank of Yugoslavia, features of which are defined by:

Decision on Issuance and Basic Features of the Banknote in denomination of 50 dinars (“FRY Official Gazette”, No 70/2000) and which had been in circulation since December 15, 2000.
Decision on Issuance and Basic Features of the Banknote in denomination of 100 dinars (“FRY Official Gazette”, No 70/2000) and which had been in circulation since December 15, 2000.
Decision on Issuance and Basic Features of the Banknote in denomination of 200 dinars (“FRY Official Gazette”, No 24/2001) and which had been in circulation since May 31, 2001.
Mentioned denominations of the banknotes ceased to be legal tender on January 1, 2007.
Banknotes in denominations of 10, 20, 50, 100, 200 and 1000 dinars issued by the National Bank of Yugoslavia in the period 2000 to 2002 may be replaced in the branches of the National Bank of Serbia in Belgrade, Novi Sad, Užice, Niš and Kragujevac, by December 31, 2012 and as to the banknotes in denomination of 5000 dinars, issued by the National Bank of Yugoslavia in 2002, they can be replaced in the Main Office of the National Bank of Serbia, Belgrade, 17 Nemanjina Street, by December 31, 2012.

Banknotes for replacement may be submitted solely by natural persons. It goes without saying that in the National Bank of Serbia authenticity of such money shall previously be identified.

In the “RS Official Gazette”, No 90/2007 and 122/2007 there was published the Decision on Withdrawal from Circulation of Coins in denomination of 50 paras issued in 2000 by the National Bank of Yugoslavia, features of which are defined by the Decision on Issuance and Basic Features of Coins in denominations of 50 paras and 1, 2 and 5 dinars (“RS Official Gazette”, No 70/2000) and which had been in circulation since December 15, 2000.

Mentioned denomination of the coins ceased to be legal tender on January 1, 2008.

By the mentioned Decision, as from November 1, 2007 final settlements in cash payment operations have been rounded within following range:

1 para to 50 paras – to 0 para,
51 to 99 paras – to 1 dinar.

From January 1, 2009 to December 31, 2012 subsequent replacement of such denomination of coins is possible to be performed in the branches of the National Bank of Serbia in Belgrade, Novi Sad, Kragujevac, Niš and Užice.

Decision taking as to rounding of prices in cashless payment operations is not in the competence of the National Bank of Serbia (but of the Government of the Republic of Serbia). Given that such decision has not been taken, prices of goods and services are still expressed in paras. In the cashless payment operations, goods and services can be paid in paras as well, whereas with cash transactions rounding of prices is applied within the aforesaid range.

In the “RS Official Gazette”, No 20/2009 there was published the Decision on Withdrawal from Circulation of Coins in denomination of 1, 2 and 5 dinars issued in 2000 by the National Bank of Yugoslavia, features of which are defined by the Decision on Issuance and Basic Features of Coins in denominations of 50 paras and 1, 2 and 5 dinars (“RS Official Gazette”, No 70/2000) and which had been in circulation since December 15, 2000.

Mentioned denomination of the coins ceased to be legal tender on January 1, 2010, i.e. it is not possible to pay with those coins for goods and services. Legal and natural persons (citizens) who have not managed to convert these denominations so far will be able to do so during the whole 2010 in all banks and NBS branches in Belgrade, Novi Sad, Kragujevac, Niš and Užice. After that deadline, coins can be replaced in NBS branches until December 31, 2012.

3. Does the National Bank of Serbia issue certificates to natural persons for the purpose of taking such banknotes out of the country?

All the supplies of banknotes issued by the National Bank of the former SFR Yugoslavia (until 1992), issued by the National |Bank of FR Yugoslavia from the period of hyperinflation (1992 to 1993) and in the period 1994 to 1999 which have been withdrawn from circulation and which have been found in the treasury, have been destroyed, save for the limited quantities of banknotes earmarked for the Numismatic Collection of the National Bank of Serbia and for sale.

The National Bank of Serbia does not sell non-circulating banknotes and non-circulating coins from the mentioned period, earmarked for sale, hence, pursuant to the provisions of the Decision on Requirements for Effecting Personal and Physical Transfers of Means of Payment to and from Abroad, it neither can issue to the holder of such banknotes and coins a certificate on the purchase thereof, nor is it competent to issue to natural persons and legal entities certificates for the purpose of taking non-circulating banknotes and coins out of the country.

The National Bank of Serbia does not verify authenticity of banknotes that have ceased to be legal tender and for which all deadlines for subsequent exchange have expired.

So far, it has never occurred that the National Bank of Serbia reprinted banknotes for the needs of collectors, if such banknotes ceased to be legal tender and if all deadlines for their subsequent exchange expired.

4. Can dinars (cash) be exchanged for foreign currency abroad?

No.

Exchange of Dinar Denominated Banknotes and Coins

1. What are the criteria against which banknotes and coins denominated in Dinars are declared to be unfit for circulation, where and on what conditions such banknotes and coins may be exchanged?
Replacement of banknotes and coins unfit for circulation
2. Whom the private individuals may turn to if the banks refuse to exchange them a damaged Dinar-denominated banknote?
Address for private individuals: National Bank of Serbia – Department for Banks’ Business Operations Control.

Exchange of Cash Foreign Currency Banknotes and Coins

1. Where can citizens exchange German marks for euros?

"All persons still in possession of German marks need not hurry up with conversion. Unlike many other EMU states, German has not imposed any time restrictions on the replacement of its old currency for the euro. Banks and savings banks do not offer the possibility of exchanging the currency at their tellers, but Bundesbank places no time restrictions on the replacement which is made free of charge in its branches.”

Some exchange offices in the Republic of Serbia replace invalid German marks. Unfortunately we do not know which exchange office does that and what fee it charges for such replacement, and we therefore suggest that citizens obtain information in some of the exchange offices as to where and under what conditions replacement of German marks for euros is possible.

Information on the types of foreign cash and the conditions under which banks buy and sell such cash may be found on the homepage of the NBS’ website (www.nbs.rs) at the Minimum and Maximum Amounts Paid and Charged by Banks in Exchange Transactions (right hand corner, above the link to the Visitor Centre).

2. Where can citizens buy Croatian kuna, Bosnian mark, etc?

The NBS deals only with three types of foreign cash – euros, Swiss francs and American dollar.

Banks and exchange dealers deal with other types of currencies. Whether and which bank deals with Croatian kunas, Bosnian marks or other currencies may be verified on a bank’s website in Serbia or enquired about in an exchange office.

3. Where can damaged foreign currency banknotes (foreign cash) be exchanged?
The purchase of damaged foreign cash, in line with regulations on the conditions and method of performing exchange operations may be performed by banks and authorised exchange dealers. Information on the types of currencies of damaged foreign cash repurchased by banks and the fee charged for the performance of these transactions may be found on the bank’s website or in some exchange offices. We also emphasise that banks independently establish the criteria for the level of damage on these banknotes.
4. Does the law envisage the possibility of exchanging banknotes (dinars and foreign cash) that are damaged under the influence of protection systems (colouring of money, etc) during transport?

The Decision on the Manner of Performing Operations with Foreign Cash Between the National Bank of Serbia and Banks, Decision on the Manner of Managing Cash Flows by Supplying Banknotes and Coins to Banks and the Guidelines for Implementing the Decision on the Manner of Managing Cash Flows by Supplying Banknotes and Coins to Banks define, inter alia, the manner of dealing with dinar and foreign currency banknotes that are damaged due to the effect of protection systems (colouring of banknotes, etc) during transport.

Banks shall receive from clients banknotes unfit for circulation and stained with alert colour used for chemical protection of banknotes in transport, and/or used in case of forceful opening of a package of cash, provided the submittor of the banknote submits an ID document and fills in the statement on the origin of such banknotes (in a signed form given by a bank to the banknote submittor).

Regulations

Decision on the Manner of Performing Activities Related to Foreign Cash Between the National Bank of Serbia and Banks
Decision of the National Bank of Serbia on the Manner of Managing Cash Flows by Supplying Banknotes and Coins to Banks;
Guidelines for the Implementation of the Decision of the National Bank of Serbia on the Manner of Managing Cash Flows by Supplying Banknotes and Coins to Banks.

5. May foreign currency coins be brought into the National Bank of Serbia for the purpose of exchanging them with no fee charged?
No. The National Bank of Serbia does not receive foreign coins not does it perform exchange operations.

Hyperinflation

Hyperinflation in FR Yugoslavia 1992-1993

Hyperinflation which existed in the period 1992-1993 in FR Yugoslavia is a phenomenon which as per its duration, intensity and destructive consequences, as a matter of fact, has never been noticed in the economic history. Such an extreme stage of development of inflation, with increase in prices exceeding 50% at monthly level, is a reflection and generator of general economic breakdown, i.e. economic collapse and impoverishment of the people and the country. Breakdown of the system of value led to almost exclusive speculative mode of business operations. Four programs of stabilization and three denominations in 1992 and 1993 did not lead to the wished goal, but provoked explosion of prices.

Negative effects of hyperinflation were additionally induced by its duration, as per which our country marks third place in the world: the first one is Nicaragua (1987-1991), where hyperinflation took 48 months, the second one is Russia (1921-1924) with 26 months, and the third one FR Yugoslavia (1992-1994), where it lasted 25 months.

As per the intensity of the inflation, we are on the second place: the first one is Hungary (April 1945-July 1945), where it amounted to 19,800% average monthly, whereas in our country (January 1992-January 1994) it was 760.7% average monthly.

In the ascendant, in January 1994, the inflation reached 5,578,000,000,000,000,000% per annum, or about 113% per diem. Tempo of RSD exchange rate in the ascendant of inflation was as follows:

On 12th November 1993 1DEM = 1 million dinars,
On 23rd November 1993 1DEM = 6.5 million dinars,
On 11th December 1993 1DEM = 800 million dinars,
On 15th December 1993 1DEM = 3.7 billion dinars,
On 29th December 1993 1DEM = 950 billion dinars,
On 30th December 1993 1DEM = 1 trillion 28 billion,
On 31st December 1993 1DEM = 4 trillion 11 billion,
On 21st January 1994 1DEM = 13 trillion 373 billion.

Circumstances and causes

“Destruction” of dinar coincides with the disintegration of the unique monetary system of SFRY and culminates during technical replacement of money in July 1992. Three days of chaos for the citizens of Serbia and Monte Negro and lost confidence in stability of monetary institutions were argumented by the fact that the Republics were prevented from valorization of their supplies of dinar banknotes. As early as in August 1992 inflation of 42% was marked.

Escalation of hyperinflation occurred by issuance of about 300 billion dinars aimed at redemption of wheat. On account of that, in August 1993, 1,880% increase in prices was marked. Toll of irresponsible economic, and especially monetary policy, was paid by the citizens.

In that period there were created two large pyramid-banks – saving banks (Jugoskandik and Dafiment bank). Core of their business activities was simple: to promise fabulous FX monthly interests of 15% and thereby to attract as greater number of depositors as possible. Newly-arrived depositors were servicing interests of the previous ones, which in the course of the year 1993 led to the destruction of the financial system. Result of that was a state debt assessed to be about 330 million EUR (now being regularly serviced according to special law).

Grey money issue debilitated economic activities and led to the breakdown of the financial system, including fiscal system as well. Chaos and corruption became dominant occurrences in the functioning of such system.

Consequences

Consequences of inadequate economic and monetary policy during 1992 and 1993, where international sanctions imposed in 1992 partly contributed to that, were basically following:

Decline of production (in 1993 with relation to 1991 – by 49%);
Decrease of fair wages of the employees (in December 1993 average wage amounted to 25 Deutsche Marks);
Decrease of fundamental revenues of the state (in December 1993 they amounted to one Deutsche Mark per individual);
Decrease of exportation and importation of goods (by 38%, and 45% in 1993 respectively, with relation to 1991);
Dinar lost attributes of legal tender;
Chronic shortage of goods occurred in the marked;
Great unemployment, formal employment and moonlighting;
About 35% of inhabitants lived below the line of poverty;
More than million people used humanitarian aid (12% of inhabitants);
More than 100,000 persons used Red Cross canteens;
Official money and capital market did not exist – with complete moonlighting

Hyperinflation, directly and indirectly, destroyed the accumulated wealth for generations. It is a consequence of disintegration of the state, of the war, transition and foreign economic pressures, but also a phenomenon consciously caused by manipulations of the regime, motivated by possibilities of redistribution of the wealth. That is indicated by its abrupt breakdown at the beginning of 1994, also based on a political decision.

Quantitative indexes on the quantity, face value and denomination structure of the fabricated banknotes speak best about conditions in which the National Bank of Yugoslavia operated in the time of hyperinflation, with a special look-back to the year 1993.

DISCLOSURE OF BANKNOTES MANUFACTURED IN 1993

Type of denomination	Manufactured (pieces)	Amount (dinar)
10000/I-1	23,560,000	235,600,000,000.00
50000/I-1	81,840,000	4,092,000,000,000.00
100000/I-1	27,000,000	2,700,000,000,000.00
500000/I-1	27,280,000	13,640,000,000,000.00
1000000/I-1	675,000	675,000,000,000.00
5000000/I-1	66,720,000	333,600,000,000,000.00
10000000/I-1	3,080,000	30,800,000,000,000.00
50000000/I-1	28,300,000	1,415,000,000,000,000.00
100000000/I-1	41,680,000	4,168,000,000,000,000.00
500000000/I-1	16,520,000	8,260,000,000,000,000.00
1000000000/I-1	25,658,000	25,658,000,000,000,000.00
10000000000/I-1	7,380,000	73,800,000,000,000,000.00
Total:	349,693,000	113,686,742,600,000,000.00

DENOMINATION PERFORMED ON OCTOBER 1, 1993 IN PROPORTION 1:1000000

5000/I-2	22,200,000	111,000,000,000.00
10000/I-2	18,630,000	186,300,000,000.00
50000/I-2	29,520,000	1,476,000,000,000.00
500000/I-2	20,640,000	10,320,000,000,000.00
5000000/I-2	26,210,000	131,050,000,000,000.00
50000000/I-2	15,100,000	755,000,000,000,000.00
500000000/I-2	15,100,000	7,550,000,000,000,000.00
5000000000/I-2	11,070,000	55,350,000,000,000,000.00
50000000000/I-2	10,850,000	542,500,000,000,000,000.00
500000000000/I-2	11,020,000	5,510,000,000,000,000,000.00
Total:	180,340,000	6,116,298,143,300,000,000.00
GRAND TOTAL:	530,033,000	6,229,984,885,900,000,000.00

DENOMINATION PERFORMED ON JANUARY 1, 1994 IN PROPORTION OF 1:1000000000

From the foregoing disclosure it can be seen that in 1993 an enormous quantity of banknotes was manufactured (530 million of pieces for manufacturing of which there was spent about 530 tonnes of paper) which resulted in a situation that the machines for banknotes manufacturing at the Institute for Manufacturing of Banknotes and Coins – Topcider “were not cooling down”; for transportation of money to the end users in the payment system there were being used means of transport which are not otherwise used in normal circumstances (special armoured vehicles), and not less important fact was that such situation required engagement of substantial number of people for the needs of transportation, counting, processing of money and the like.

Also at that time, banknotes were printed on special paper structure of which was cotton 100%, but additional elements of protection against counterfeiting were not being incorporated in the banknotes (which would have been absurd at that time, as contemplated from the viewpoint of the persons doing that in stable conditions with different motivations).

By implementation of monetary reform and by introduction into circulation of “new dinar” (the so-called Avram’s new dinar) at parity 1 dinar = 1 DEM, hyperinflation banknotes were by the official decisions of the National Bank of Yugoslavia withdrawn from circulation and a deadline was given for such banknotes to be exchanged for the circulating banknotes (until 22 August 1994) at parity 12,000,000 = 1 new dinar. The effects were almost negligible, having in mind destructive impact of hyperinflation and total depreciation of such banknotes, so that the National Bank of Yugoslavia, pursuant to the prescribed enactments and procedures, carried out destruction of minimum quantity of hyperinflationary banknotes found in the treasuries, first of all those denominations which had last been printed out, having in mind that “prior issues” had been in entirety distributed to the payment operations system.

For the purpose of comparison, we state that in the period from the beginning of 1994 (when new dinar was put into circulation) until introduction in circulation of new series of banknotes issued by the National Bank of Yugoslavia (in 2000) there were manufactured total of 479,600,000 pieces of banknotes of all denominations in the nominal amount of 16.08 billion dinars (less within six years, than only for one year in the period of hyperinflation). Also, for the purpose of comparison, out of the total manufactured quantity of the mentioned series there were withdrawn from circulation and destroyed 454,821,585 pieces of banknotes (94.83%) in the nominal amount of 15.685 billion dinars (97.50%).

From introduction into circulation of a series of banknotes in 2000, issued by the National Bank of Yugoslavia (denominations of 10, 20, 50, 100, 200, 1000 and 5000 dinars) until introduction in circulation of a series of banknotes issued by the National Bank of Serbia (ever since 2003 onwards, denominations of 10, 20, 50, 100, 200, 500, 1000 and 5000 dinars) there has been manufactured total of 341.9 million pieces of banknotes in the nominal amount of 71.54 billion dinars. Banknotes issued by National Bank of Yugoslavia were in parallel circulation with the banknotes issued by the National Bank of Serbia until December 31, 2006 when such series of banknotes was withdrawn from circulation. So far, there have been destroyed 322.5 million pieces of banknotes of all denominations issued by the National Bank of Yugoslavia (94.31%) in the nominal amount of 70.57 billion dinars (98.41%). The effects are going to be better having in mind that there is a deadline for subsequent replacement of non-circulating banknotes for the circulating ones until December 31, 2012.

Ever since 2003 to present, there have been manufactured total of 452.8 million pieces of banknotes issued by the National Bank of Serbia, in the nominal amount of 189.4 billion dinars. Out of that, in circulation are 207.3 million pieces of banknotes in the nominal amount of 95.6 billion dinars. Total of destroyed banknotes is 107.9 million pieces of banknotes in the nominal amount of 34.5 billion dinars and the remainder of 137.6 million pieces of banknotes in the nominal amount of 59.3 billion dinars, is in the treasures of the National Bank of Serbia in different forms (available and non-available for circulation, destroyed, in original packaging of the Institute for Manufacturing of Banknotes and Coins, and the like).

In the present, stable conditions, while planning manufacturing of banknotes and coins following elements are taken into consideration:

The achieved level of money supply (M1) and the nominal amount and % of share of cash (banknotes and coins) in circulation within the money supply, as well as estimates on the movements of the money supply and cash in circulation within money supply in the forthcoming year,
Data on the manufactured and destroyed banknotes and coins,
Data on denomination structure of banknotes and coins in the vaults in the NBS Head Office, in the vaults of the branches of the National Bank of Serbia as well as on denomination structure of banknotes and coins in circulation,
Data on quality of banknotes – i.e. data on the degree of damaged and worn banknotes – based on which estimate is done on withdrawal from circulation and destruction of banknotes unfit for circulation (worn and damaged banknotes) and on account of that, estimate of needs for additional manufacturing of banknotes for the purpose of replacement of banknotes unfit for circulation,
Ratio of the actual balance of denomination structure of banknotes and coins with relation to optimally necessary denomination structure and nominal amount of banknotes and coins,
Cost estimates as to manufacturing of banknotes and coins.

Additional manufacturing of banknotes and coins in current conditions is carried out solely so as to meet needs of payment operations system in the volume and quantity determined by macroeconomic parameters and for the purpose of replacement of banknotes unfit for circulation (worn and damaged banknotes). Economic and other circumstances our society is functioning in now are such that there is no fear of repeating the situation from 1993 and the only thing left is to conclude as follows: “Let it never happen again”.

Programme of manufacturing banknotes and coins, as a rule, is made out in the fourth quarter of the current year for the ensuing year. Based on the acquired consent of the governor as to the programme of manufacturing banknotes and coins, the National Bank of Serbia – Treasury Department, takes care of its operative realization, in terms of giving orders to the Institute for Manufacturing Banknotes and Coins – Topcider (ZIN) to manufacture banknotes as per the defined schedule.

Destruction of Banknotes

1. Where and how the National Bank of Serbia destroys Banknotes and Coins?

In order to maintain the quality of circulating banknotes, the National Bank of Serbia regularly withdraws from circulation banknotes unfit for circulation (worn and damaged banknotes) replacing them with new banknotes.

Within its competences, as defined by the Law on the National Bank of Serbia, the National Bank of Serbia destroys the following:

banknotes unfit for circulation (worn and damaged banknotes) and damaged coins;
banknotes and coins withdrawn from circulation and ceased to be legal tender as well as banknotes and coins that were not in circulation;
maculated banknotes and scrap coins,
counterfeit banknotes.

Destruction of banknotes is done in the following locations and manner:

on a special machine for destroying banknotes located within the Institute for Manufacturing Banknotes and Coins – Topcider (ZIN) – by shredding and briquetting;
on a special machines for banknote sorting and destruction in the branch of the National Bank of Serbia in Belgrade and Novi Sad – by cutting in the shape of “cuttings”;
in other locations – in an adequate manner, subject to Governor’s decision.

Coins are destroyed in the process of re-melting and metal obtained from destroyed coins is used to mint new coins.

Foregoing valuables are destroyed pursuant to Decision on Destruction of Banknotes and Coins respectively, issued by the Governor or a person authorized by the Governor.

Banknote Reproduction

1. Can banknotes and coins be reproduced for producing panels or similar scene settings, advertisements, etc. and subject to which conditions?

Yes. The conditions for reproducing the banknotes and coins issued by the NBS in line with the NBS Law are regulated by the decision on conditions for reproducing banknotes and coins (“RS Official Gazette”, No 24/2007).

Devaluations and Denomiantion of the Dinar

1. When did the devaluations and denominations of the dinar in the SFR Yugoslavia and FR Yugoslavia take place?

Devaluations of the dinar

Date of devaluation	Amount of dinars for
Date of devaluation	1 U.S. dollar	1 German mark
until 1 January 1952	50.00
1 January 1952	300.00
30 November 1964	750.00
26 July 1965	1,250.00
24 January 1971	15.00
22 December 1971	17.00
6 June 1980	27.30
21 October 1981	36.90
16 November 1987	1,297.84
25 May 1988	1,536.40
28 December 1989		7.00
1 January 1991		9.00
20 April 1991		13.00
26 January 1992		65.00
4 February 1992		84.20
11 March 1992		85.00
13 April 1992		200.00
1 July 1992	200.00
13 November 1992	750.00
10 April 1993	48,000.00
24 January 1994		1 new dinar
25 November 1995		3.30
31 March 1998		6.00
6 December 2000		30.00

Denominations of the dinar

Date of denomination	Scope of denomination
1 August 1965	100.00 dinars = 1 dinar
1 January 1990	10,000.00 dinars = 1 dinar
1 July 1992	10.00 dinars = 1 dinar
1 October 1993	1,000,000.00 dinars = 1 dinar
1 January 1994	1,000,000,000 dinars = 1 dinar
24 January 1994	13,000,000,000 dinars = 1 dinar
- new dinar as of 26 January 1994	12,000,000,000 dinars = 1 dinar

Design of Banknotes and Coins

1. Which are the distinctive features of a specific series of banknotes and coins?

Basic elements of the feature of the banknotes constituting a single series are selection of motifs and depictions which should represent a related whole, as well as uniformity of artistic depictions in the manufacturing of each denomination of a specific series. Reasons for such approach in the manufacturing of banknotes, is achievement of thematic and visual layout enabling recognizability of a specific series.

Thus, in the series of banknotes in view of thematic feature, we find groups of motifs from the domain of the cultural and historical heritage, monuments, selection of personalities that left a significant mark in the national history, either in political or some other spheres, and even wildlife motifs with specific recognizability of the issuer’s region or country. That is supplemented by the introduction of elements (data) relating to the issuing bank, state, relevant emblem, coat of arms, par value designation and the like; as well as adequate security features against counterfeit whereby, in the final outcome, feature of a banknote of a specific series is formed.

General feature of the designs applied in manufacturing of a series of banknotes in circulation issued by the National Bank of Yugoslavia in the period 2000-2002 is that personalities on the banknotes are important personalities from our culture, science and art, as follows:

10 dinars – Vuk Stefanovic Karadzic, reformer of the Serbian language and alphabet,
20 dinars – Petar Petrovic Njegos, statesman, philosopher and poet,
50 dinars – Stevan Mokranjac, founder of Serbian ethnomusicology,
100 dinars – Nikola Tesla, scientist,
200 dinars – Nadezda Petrovic, painter and humanist,
500 dinars – Jovan Cvijic, anthropologist and anthropogeographer, founder of contemporary geographical science in Serbia
1000 dinars – Djordje Vajfert, industrialist and banker, long-time NBS Governor,
5000 dinars – Slobodan Jovanovic, lawyer and historian.

Artistic depictions for banknotes may be proposed by organizational units and individuals within the National Bank of Serbia, as well as individuals and institutions outside the National Bank of Serbia.

The Institute for Manufacturing Banknotes and Coins – Topcider manufactures at least two banknote designs and submits them to the Governor and the Treasury Department, which provides its opinion on such designs to the Governor.

The Governor selects and approves in writing the design of the banknotes.

The National Bank of Serbia manufactures very small amounts of banknote specimens (1000 pieces) and uses these specimens exclusively for notifying central banks and prime correspondents worldwide on the features of new banknotes placed into circulation - therefore, the National Bank of Serbia does not sell specimens of banknotes placed into circulation.

More detailed information on the features of such denominations of banknotes and coins is available on the website of the National Bank of Serbia: www.nbs.rs, page: Banknotes and Coins – Banknotes in Circulation and Coins in Circulation respectively.

2. Is the National Bank of Serbia preparing a new design for banknotes and coins in circulation?

The National Bank of Serbia planned to manufacture a new series of banknotes, thus on December 31, 2007 it published a public invitation for artistic designs for the new series of banknotes - in denominations of 10, 20, 50, 100, 200, 500, 1000, 2000 and 5000 dinars. Deadline for submission of designs was June 30, 2008. Basic motive of the National Bank of Serbia for public invitation as to designs of a new series of banknotes was improvement of the design of banknotes, manufacturing technique, introduction of new elements of protection against counterfeiting as well as that new series of banknotes should form a unique whole as per its basic features, subject matter with selected specific motifs and artistic depiction.

Proceeding from the fact that our money is a part of our culture and national identity and that feature thereof and physical conservation provide first impressions on our country and its citizens, intention of the national Bank of Serbia was to organize a public exhibition of the selected designs so that the exhibited designs could be subject of public assessment and voting which would enable all structures of the society to be included in the creation of the feature of our banknotes and coins.

Unfortunately, response to the public invitation was unexpectedly small and the offered artistic designs are not even close to the level of the wishes and intention of the National Bank of Serbia. Due to that reason, the existing series of banknotes issued by the National Bank of Serbia in denominations of 10, 20, 50, 100, 200, 500, 1000 and 5000 dinars shall remain in circulation until further notice.

As to the coins, there shall not be any significant changes of the features. In the forthcoming period the National Bank of Serbia, in addition to mintage of denominations of 1, 2 and 5 dinars within relatively larger volume (so as to meet needs of cash payment operations system) is going to mint denominations of 10 and 20 dinars in smaller number of copies, with featured motifs commemorating historical, cultural, scientific, sporting and other events of significance for the Republic of Serbia or of general significance.

3. Why are 10- and 20-dinar banknotes and coins in parallel circulation?

National Bank of Serbia, among others, ensures an adequate volume, quantity and denomination structure of banknotes and coins in circulation therefore, in terms of that, both 10-dinar banknotes and 20-dinar coins have their place in the payment system. Apart from that, the National Bank of Serbia closely monitors cash flows in circulation and payment system needs, and these undoubtedly point to a need for 10- and 20-dinar coins, as such coins are used not only for usual payments of goods and services but also for different automatic machines which are used with increasing frequency.

On 2 July 2003, the National Bank of Serbia placed 10- and 20-dinar coins into circulation. At that point, the costs of manufacturing banknotes and coins were approximately the same, but the National Bank of Serbia decided to issue coins because their lifetime is “unlimited” (as coins hardly ever change their shape), whereas optimal lifetime of banknotes is short (up to two years) and new banknotes need to be printed in order to replace worn and damaged ones.

The reasons for reprinting of 10- and 20-dinar banknotes issued by the National Bank of Serbia and for their placement into circulation are the following:

Drastic surge in metal prices in world exchanges since early 2006 triggered an enormous rise in costs of manufacturing coins, which multiply exceed the costs of manufacturing same-denomination banknotes (for the sake of illustration, costs of manufacturing a 10-dinar and 20-dinar coin equal 9.78 dinars/coin and 12.03 dinars/coin, respectively, while costs of manufacturing banknotes of the same denomination equal 2.24 dinars/banknote);
In the second half of 2006, the NBS issued a decision on withdrawing from circulation banknotes issued by the National Bank of Yugoslavia, including 10- and 20-dinar banknotes. As the denominations of smaller face value are almost never returned in the form of surpluses, it was more rational, from an economic viewpoint, to print additional quantities of banknotes in denominations of 10 and 20 dinars in order to meet regular cash payment system needs and replace banknotes withdrawn from circulation.
In practice, the use of 10- and 20-dinar banknotes in payment transactions turned out as more practical than the use of coins in the same denomination, as it facilitates counting, processing and transportation of money.

Since 2006, the National Bank of Serbia has been producing minimum quantities of 10- and 20-dinar coins (1,000,000 pieces each), primarily to meet the needs of owners of different automatic machines that use such denominations and to commemorate historical, cultural, sporting and other events of significance for the Republic of Serbia (in 2006, 20-dinar coins were issued to mark 150th anniversary of birth of Nikola Tesla, while in 2007, 20-dinar coins were minted to mark the bicentenary of Dositej Obradovic’s coming to Serbia) and in 2009 there will be minted 10-dinar coins with motifs of 25th Summer Universiade in Belgrade, and on the M+ coins in denomination of 20 dinars there shall be image of Milutin Milankovic – whereby there shall be commemorated 135 anniversary of birth of this scientist with world fame. This means that in the period ahead, 10- and/or 20-dinar coins will feature one of the important personalities from the Serbian history, sports, science, culture, etc.

Also, there is a practice in the world that banknotes and coins of same denomination are in circulation and in view of that the National Bank of Serbia is not an exceptional case.

Security Features to Protect Banknotes from Counterfeiting

1. Which are the most frequent security features on banknotes?

State-of-the art technologies are applied in banknote fabrication in order to protect banknotes from counterfeiting. All banknotes are printed on tinted security paper with multi-tone watermark in the form of the portrait of the personality depicted on each banknote. Banknotes also contain a dashed security thread in silver colour which contains micro-lettering “ДИНАР DINAR” continuously repeated and readable from both obverse and reverse of the banknote (security thread and micro-lettering are clearly visible from the reverse, whereas on the obverse of the banknote they are only visible if exposed to the light which makes the banknote transparent). Yellow, blue and red-coloured security small fibres are incorporated in the paper, out of which yellow and red ones are visible under a UV lamp.

Different printing techniques are applied in banknote manufacturing. Banknotes in denominations of 10 and 20 dinars are printed with the application of the multicolour line offset printing technique, with value numerals produced in letter press, while other denominations of the series were produced in both this and intaglio printing technique. The intaglio technique was applied to portraits of personalities presented on banknotes and additional security features. Among such elements are inscription Narodna banka Srbije, mark for the blind and partially sighted, as well as the tilting effect depiction. The latter presents the NBS logo visible only if banknote is tilted at certain angles. The optically variable ink OVI is another security element which, as its name suggests, changes colour depending on the angle of looking, and is printed in intaglio on all banknotes of 1,000 and 5,000 dinars.

Another very significant security feature is the kinegram representing applicated element on the banknote. It consists of a metallised and non-metallised part and if the banknote is tilted, several different-coloured shifting images appear on the kinegram. This element has been incorporated in 200, 500, 1,000 and 5,000 dinar banknotes.

In case of the highest-denominated banknote of 5000 dinars, certain areas of the reverse contain an additional security feature produced by applying printing with colours sensitive to infrared light, which disappears off the IR light monitor upon exposure to such light (becomes invisible).

In addition to the above security features, all banknotes contain inscriptions in micro-text and the so-called see-through register.

2. 2. If private individuals get a counterfeited domestic or foreign currency banknote, where can they hand it over and what are they supposed to do with such banknotes?

Evident is ever-growing number of counterfeited dinars in the payment operations system which, in the circumstances of development of science and technique, are getting improved and become more and more convincing, i.e. more and more similar to the authentic banknotes, thus there is a higher risk that citizens might be in possession of counterfeited banknotes. Counterfeits of dinars most often appear in the end-of-the-day cash of trading shops, markets, petrol stations, booths and other similar locations where payments are effected in cash. We point out that persons who get counterfeited banknotes shall suffer the damage because such banknotes are not exchanged for original banknotes. In order to reduce such risk to minimum, we suggest following:

Citizens should reduce usage of cash to the minimum and payments should be effected cashless wherever it is possible – by checks or by means of payment cards;
Citizens should buy and sell foreign currency cash at legal points of sale – in banks, post offices and authorized exchange offices;
Color saturation, Private individuals and persons dealing with cash should check authenticity of the banknotes while receiving them – checking visible security elements (dash security thread with micro-lettering, watermark in the form of portrait visible if exposed to the light, kinegram and hologram where, if the banknote is tilted, several different-coloured shifting images appear, color saturation is changed, and the like);
Private individuals and persons dealing with cash should especially be cautious in the conditions of reduced visibility and in the busy places, given that in such conditions forged banknotes planting is the most common;
Private individuals who get banknotes suspecting that they are forged should hand over the same to the nearest secretariat of the Ministry of Internal Affairs. The MIA shall then issue to the private individuals a certificate on the specimen banknotes taken under suspect of forgery and shall pass them on to the National Bank of Serbia for expert analysis. The National Bank of Serbia shall advise the MIA on the expert analysis findings. If by the expert analysis it is concluded that the word is about a forgery, the same shall be kept at the National bank of Serbia and destroyed. If by the expert analysis it is concluded that the word is about original banknotes, the same shall be returned to the MIA and thereafter to the private individuals who have handed them over to the MIA. This way private individuals may give a constructive contribution to the establishment of the origin of counterfeited banknotes and possible discovering of other participants in the distribution of counterfeited banknotes, and by destruction and withdrawing from circulation of the counterfeited banknotes, negative multiplied effect caused to the payment system by such banknotes, shall be neutralized.