---

The establishment of the Central Bank of Montenegro signalled a new phase in the monetary history, that is, the history of central banking in Montenegro.

The CBCG pursues monetary policy in a specific foreign exchange regime. The existing foreign exchange regime in Montenegro is dollarisation (euroisation). Dollarisation means a rigid foreign exchange regime (fixed foreign exchange regime) in which a country uses another country’s currency in parallel or instead of its own currency. Montenegro went through all the basic forms of dollarisation: unofficial dollarisation until November 1999, then partial official dollarisation from November 1999 to November 2000, when Montenegro became an officially dollarised/euroised economy by first introducing the German Mark and then the euro in 2002 as the sole legal tender.