Ефекти очувања монетарног суверенитета Србије
The Effects of Maintaining Monetary Sovereignity in Serbia

Summary/Abstract: Effects of maintaining the national currency (RSD; dinar) is a very important topic for the country such as Serbia. Historically, foreign currency (mostly Deutch mark) has been unofficially used in Serbia due to the volatile political and economic situation during the 1990s. Introduction of the euro has been followed by high level of euroization of the Serbian economy. Namely, the euro has been widely used for various types of financial transactions in Serbia. During the past 16 years, Serbia has strived to become a full member of the EU, which would consequently lead to adoption of euro as the official currency. Even though unilateral introduction of euro in Serbia is theoretically plausible, it would surely worsen relations with the EU. This is a very important point due to the fact that Serbian accession process has not been smooth. This paper establishes that a high level of euroization in Serbia exists, by application of quantitative methods. Therefore, a key issue arises – whether preservation of Serbian monetary sovereignity has delivered positive or negative effects? Analysis of statistical dana enabled evidence based conclusions that depreciation of the dinar between 2008 and 2017 has contributed to increase of Serbian exports that almost doubled during analyzed period. Increase of exports partially neutralized negative effects of economic crisis on GDP and has positively contributed to stabilization of the national economy. Therefore, preservation of dinar as national currency in previous period delivered positive effects and would in fact accomodate convergence of Serbia to full membership of the EU, rather than the opposite.

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