MKD - Macedonian Denar

History of the Macedonian Denar (MKD)

The Denar (currency code: MKD) is the official currency of the Republic of North Macedonia. The name "Denar" is derived from the "denarius" - a type of ancient Roman coin, which shows the historical and cultural connection of this region.

The Denar was first issued in 1992, shortly after the Republic of Macedonia (now North Macedonia) declared independence from the Socialist Federal Republic of Yugoslavia. Denar replaced the Yugoslav Dinar and initially had an exchange rate of 1 Denar to 1 Dinar.

However, due to the inflation situation, in May 1993, Macedonia issued a new Denar, with an exchange rate of 1 new Denar equal to 100 old Denars.

The first Denar (1992 - 1993)

The first Denar was a temporary currency introduced on April 26, 1992, to replace the Yugoslav dinar at a 1:1 exchange rate, marking the monetary independence of the Republic of Macedonia (now North Macedonia). The issuance of the first Denar was an important step in building the independent economy of this country after its separation from the Socialist Federal Republic of Yugoslavia.

After declaring independence from Yugoslavia on September 8, 1991, Macedonia continued to use the Yugoslav dinar for a short period. However, preparations for issuing its own currency were carried out secretly shortly thereafter. By April 1992, Macedonia was ready to launch its national currency, the Denar.

On April 26, 1992, the National Bank of Macedonia was established, and the very next day, temporary banknotes in the form of "value vouchers" were put into circulation. On April 30, 1992, the Yugoslav dinar officially ceased to be legal tender in Macedonia.

By May 1993, the first Denar was replaced by the new Denar at an exchange rate of 100 old Denars = 1 new Denar. This currency was issued in both paper and coin forms.

Coins

For the first Denar (1992-1993), no coins were issued.

Banknotes

Temporary banknotes, also known as "value vouchers," were put into use on April 27, 1992. However, the preparation for the production of banknotes began very early, as soon as there was an intention to issue the new currency. These banknotes continued to circulate until they were replaced by the permanent banknotes of the second Denar in 1993.
Production

The printing of the first Denar banknotes began on January 15, 1992. Due to the secretive nature of the preparations, there were many difficulties during the production process. The printing paper was purchased from Slovenia; however, the quality of the paper was not guaranteed, and the security features were not high. Especially, the official name "Denar" does not appear on the banknotes because they were printed before the National Currency Unit Law was passed. Instead, the issuing unit printed on the banknotes is "National Bank of Macedonia."

The first Denar banknotes were designed by a young employee of the printing house in just one week with a very limited budget, so the six lowest denominations had identical designs, differing only in color. On the front of the banknote, there is an image of a man and two women picking tobacco leaves, while the back features the Ilinden Monument in Kruševo, symbolizing the "unwavering struggle of the Macedonian people for a peaceful and free life."On the front of the banknote, there is an image of a man and two women picking tobacco leaves, while the back features the Ilinden Monument in Kruševo, symbolizing "the relentless struggle of the Macedonian people for a peaceful and free life."

Exchange rate

When it was introduced, the Denar had a fixed exchange rate of 360 Denars = 1 German Mark. (DEM). This exchange rate helps ensure the initial stability of the new currency of this country during the transition away from the monetary system of Yugoslavia.

The second Denar (1993 - now)

The first phase (1993)

In May 1993, the second Denar of North Macedonia was issued. The coin denominations include 50 deni and 1, 2, 5 denar. These coins were designed by Dimče Boškoski and Snežana Atanasovska. Then, in November 2008, coins with denominations of 10 and 50 denars were put into circulation, while the 50 deni coin was withdrawn in 2013 due to its low issuance and lack of popularity in circulation, as it was only minted in 1993.

Since 1996, the National Bank of North Macedonia has issued a large number of commemorative coins for collectors. The list of these coins can be found on the national bank's website.

The Denar coins are minted at the Suvenir factory in Samokov, a village near Makedonski Brod.

The second phase (2020)

After North Macedonia changed its name according to the Prespa Agreement, a new set of coins called the Republic of North Macedonia was introduced. The new coins began circulating from April 2021, starting with the 1 denar coin.

FAO coins (1995)

In 1995, coins with denominations of 1, 2, and 5 denars were minted to honor the Food and Agriculture Organization of the United Nations. (FAO).

Banknotes 

In 1993, a new series of Denar banknotes was issued with denominations of 10, 20, 50, 100, and 500 denars. Especially, the 20 denar denomination only appeared in this first series of banknotes. By 1996, two higher denominations, 1000 and 5000 denars, were added.

In 2016, the 200 and 2000 denar notes were issued, while the national bank began withdrawing the 5000 denar note from circulation to rebalance the existing monetary structure.

In 2017, the national bank introduced polymer banknotes including denominations of 10 and 50 denars, and they officially entered circulation on May 15 of the same year. 

Macedonian Denar (MKD) Denominations

The current Denar currency includes both paper money and coins with the following denominations:

• Coins: 1, 2, 5, 10, 50 Denar

• Banknotes: 10, 50, 100, 200, 500, 1000, and 2000 Denar

Macedonian Denar (MKD) exchange rate

The National Bank of North Macedonia (NBRM) is responsible for managing monetary policy and regulating the exchange rate of the Denar. The National Bank of North Macedonia applies a fixed exchange rate regime to the euro (EUR) to ensure stability and minimize the risk of inflation. The exchange rate of the Denar against other currencies, such as the US dollar (USD), may fluctuate, but the government and the NBRM usually maintain a stable exchange rate to protect the national economy.

The Denar is not only the official currency but also plays an important role in stabilizing North Macedonia's economy. Strict monetary management policies and inflation control have helped the Denar maintain its value, especially in the context of economic integration with the European Union and international partners.