Currency Devalued; Price Hikes Follow
From Times Wire Reports
The government devalued the currency, the dinar, by 45%, prompting immediate price hikes and sending nervous Yugoslavs on a shopping spree for staple goods. Officials explained the move--which raised fears of inflation--as a measure to achieve market stability. The National Bank governor, Dusan Vlatkovic, said the devaluation would “eliminate the black market and stimulate exports.” But black-market vendors merely adjusted their rates and continued selling and buying foreign currencies on the streets.
More to Read
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.