The denar is the official currency of the Republic of Macedonia. The currency has a hundredths subunit called the deni. The denar was introduced in 1992 after Macedonia declared its independence from Yugoslavia. The symbol for the denar, ден, is the first three letters of the currency in the Cyrillic alphabet. As the central bank of the nation, the denar is issued by the National Bank of the Republic of Macedonia (NBRM).
Macedonia declared independence from Yugoslavia in 1991, and the first Macedonian denar was put into circulation in 1992, replacing the Yugoslav dinar on par. Coins for the first denar were never issued, but banknotes were printed in denominations of up to 10,000 denars. Due to inflation, the denar was revalued the following year. The second denar replaced the first at a rate of 1 new denar: 100 old denar and was pegged to the Deutschmark at 360 denar: 1 Deutschmark. This peg was abandoned with the introduction of the euro, and the denar is now on a managed peg with the euro at 61 denar: 1 euro. The denar is circulated through both coins and banknotes. Coins are minted in denominations of ½, 1, 2, 5, 10 and 50 denars. Banknotes are printed by De La Rue Printing in London in denominations of 10, 50, 100, 500, 1000 and 5000 denars.
The National Bank of the Republic of Macedonia was established in 1991 as the central bank of Macedonia. NBRM was charged with several duties beyond issuing the denar. Such duties include establishing monetary policy, handling foreign reserves, regulating the national payment system, supervising commercial banks, supervising foreign exchanges and acting as a banker to the central government.
Macedonia was the least developed and poorest of the former republics of Yugoslavia. Although unemployment and poverty continue to be major problems, the World Bank ranks Macedonia at number 4 out of 178 on its list of best reformatory states. As of 2005, unemployment was over 37 percent and the poverty rate was at 22 percent. The most important sector of the Macedonian economy is services, accounting for over 57 percent of the GDP. Industry accounts for just over 29 percent of the GDP, followed by agriculture at nearly 13 percent. As of 2008, GDP per capita is only at 32 percent of the average for the European Union. Macedonia continues to place an emphasis on attracting foreign investors.