Dear citizens,

As of January 1, 2002 twelve European Union Member States shall have the single currency EURO. Three hundred million Europeans shall confidently replace their national currencies with it. Approximately 720.000 citizens of Montenegro shall join them.

Montenegro will introduce EURO following its strategic interests and making another large step towards integration into European structures.

Economic flows in Montenegro were stabilized by the introduction of mark as the hard currency, lives of citizens and functioning of the economy were significantly facilitated. With EURO, supported by the one of the most powerful economies in the world, Montenegro and their citizens will have strong currency as important prerequisite for the future economic development.

Since German mark will be withdrawn from circulation, I kindly invite you to convert it into EURO in commercial banks or Central Bank Payment System units. Citizens of Montenegro shall not be charged any fee for the conversion.  Please, believe in EURO. As of January 1, 2002, EURO is our money. 

Sincerely

What is Euro?

Euro is common currency and legal means of payment in Austria, Belgium, Finland, France, Greece, Netherlands, Ireland, Italy, Luxemburg, Germany, Portugal and Spain (Euroland), and Andorra, Holly Sea, Monaco, San Marino and Montenegro will also replace their currencies with it as of January 1, 2002.

What is the reason for the introduction of Euro?

To facilitate the flow of goods and services and international communication.

Why Euro in Montenegro?

Montenegro tends to have strong and convertible currency upon which it will base its economy, avoid inflation and more easily get involved into European economic trends. As Germany is replacing the mark with Euro, Montenegro, in which mark is legal means of payment, shall embark this process as well.

How is Euro marked?

It is marked as EUR or with the sign €.

What is the exchange rate of mark to euro?

One Euro amounts to DEM 1,95583.

Who determined the exchange rate of Euro to other currencies of Euroland countries?

This exchange rate was determined by the European Union, National Central Banks of EU countries introducing Euro and European Central Bank, and this exchange rate will not be changed.

What is the exchange rate of Euro to dollar?

It will be determined by the market, meaning it is subject to changes.

What are the euro denominations?

There are seven paper notes: 5, 10, 20, 50, 100, 200 and 500 euros and eight coins: 1 and 2 euros and 1, 2, 5, 10, 20 and 50 cents. Paper notes are printed by the European Central Bank and they are the same in all countries; coins are issued by the Central Banks of Euroland countries. The heads is the same, while the tails present national symbols. No matter in which country they are coined, coins are legal means of payment in all countries using euro (see the picture).

When the euro is to be introduced – when the conversion starts?

Euro is to be introduced on January 1, 2002 – that day in Europe is referred to as  €-day.

Where the citizens may convert their marks into euros?

The citizens will be able to convert marks in the Central Bank of Montenegro, at teller windows of the Institute for settlement of accounts and payments in every municipality and in commercial banks.

What of other currencies that cease to be valid in Euroland?

You can convert them in commercial banks by March 31, 2002.

Until when mark can be used as means of payment in Montenegro?

Until March 31, 2002.

Are marks that have not been spent or converted by March 31 going to be useless?

No. Until March 31, 2002 mark is the legal means of payment along with euro. In that period it can be converted into euro in the Central Bank of Montenegro, at teller windows of the Institute for settlements of

accounts and payments and in commercial banks. As of April 1, mark cannot be used for payments, but still can be converted into Euro for unlimited period of time.

How do we round decimals?

In the conversion process of national currencies of EU members, the amount is calculated and that amount is rounded to three decimal units. In every day turnover it will be rounded to two decimals - by the closest cent. Rounding is made upwards and downwards depending on the obtained figure at the end.

Example:

You bought articles and you have to pay the total of DEM 50. You are supposed to pay in euros. How much euros it comes to?

The total value in marks should be divided by the value of one euro:

DEM 50 : 1,95583 = EUR 25,56459

Therefore, you will pay 25,56 euros.

When the second decimal is followed by 5 or bigger number, it shall be rounded upwards, and when the number is less than 5 it shall be rounded to second decimal as it was the case in our example.

How shall we get accustomed in the market?  Are the salesmen going to increase the price due to the conversion?

The government of Montenegro passed a Decree on dual presentation of prices that prescribes that as of 10/15/2001 prices should be presented both in DEM and EUR, in order to prevent the increase of prices and to give some time to citizens to get used to the euro.

Is the origin of DEM going to be investigated?

No, taking into regard relatively long period of cash payments, even in cases of large amounts of money.

Is the amount of marks that can be converted limited?

One can convert DEM 5.000 in the Central Bank, at teller windows of the Institute for settlements of accounts and payments without any fee.  For the amounts of DEM 5.000 to DEM 10.000 the Central Bank shall charge a fee of 0.5%, meaning that you will pay DEM25 for the conversion of DEM 5000, i.e. DEM50 for the conversion of DEM 10.000. If you want to convert over DEM10.000 you will have to open the account at the commercial bank.  

How will the legal entities perform the conversion?

The funds on their accounts shall be automatically converted.

Are the banks going to convert accounts opened in marks into euros automatically?

Yes – this is the answer both for legal entities and private individuals.

Why non - cash payment, current accounts etc are mentioned?

For the purpose of easy handling, reduction of the quantity of coined money in circulation and other reasons, it is preferred that the owners of cash place deposits and open accounts with commercial banks.  It is an open possibility that shall not be insisted upon.

Are the accounts of legal entities going to be kept in both currencies during the period of dual currency system?

No. As of January 1, all accounts are presented in euros.