Slovene Tolar
- Country: Slovenia
- Currency: Tolar
- Alias: Slovene tolar
- ISO 4217 CODES: SIT/705
- Symbol: sit
The Slovenian tolar is one of the newest national currencies to enter circulation in Europe. It was introduced in October, 1991, shortly after Slovenia gained independence from the former Socialist Federal Republic of Yugoslavia. Positive political and economic relationships with other European trading partners have helped the tolar to retain much of its original value, and a significant reduction in the national inflation rate has helped to maintain prosperity. Ironically, the tolar may also become one of the shortest-lived global currencies within just a few years. Slovenia became a member of the European Union in 2004, and subsequently entered the Exchange Rate Mechanism II in preparation for an eventual conversion to the euro.
Background of the Slovenian Tolar
The nation now known as Slovenia was first inhabited in the first century B.C., but the first settlements of importance can be traced to the 6th century A.D. For much of its history, Slovenia was part of Austria, and became part of Yugoslavia in 1929. After being subdivided during World War II between Germany, Italy and Hungary, Slovenia was made a constituent republic of Yugoslavia in 1945. Subsequent to the election of a non-Communist government in 1990, Slovenia declared it independence from Yugoslavia in 1991, and introduced the tolar as its new national currency shortly thereafter. Slovenia was recognized the United Nations and the European Community as a separate nation beginning in 1992, and the country joined the North Atlantic Treaty Organization (NATO) and the European Union (EU) in 2004.
Slovenia’s economy is largely dependent upon the export of iron, steel, aluminum, coal, chemicals and textiles to countries such as Germany, Italy, France and Croatia. Electronics manufacturing is also an up-and-coming business sector, and Slovenia’s growing tourism industry is helping to diversify the country’s income stream. The Slovenian economy has also benefited somewhat in recent years from foreign investments.
The Bank of Slovenia is responsible for issuing and regulating currency within the country. Upon Slovenia’s declaration of independence in 1991, the Bank issued a series of official tolar-denominated “payment notes.” Bank notes were phased into circulation beginning the following year, and remain exchangeable for banknotes at the Bank of Slovenia.
Under the terms of the Maastricht treaty, EU members intending to adopt the euro are required to meet certain criteria, and must enter into a defined exchange rate program – currently known as the Exchange Rate Mechanism (ERM) II – prior to being granted formal permission to convert. Slovenia entered the ERM II on June 27, 2004 in hopes of being able to adopt the euro sometime in 2007.
The tolar is divided into 100 stotins. Denominations for coins are 10, 20 and 50 stotins. Denominations for banknotes are 10, 20, 50, 100, 200, 500, 1,000, 5,000 and 10,000 tolars.
