A currency may be defined as a unit of exchange, facilitating the transfer of goods and services. It is a form of money, where money is defined as a medium of exchange. A currency zone is a country or region in which a specific currency is the dominant medium of exchange. To facilitate trade between currency zones, there are exchange rates which are the prices at which currencies and the goods and services of individual currency zones can be exchanged against each other. Currencies can be classified as either floating currencies or fixed currencies based on their exchange rate (Slovenian currency exchange rate) regime. In common usage, currency sometimes refers to only paper money, as in “coins and currency”, though this is misleading. Coins and paper money are both forms of currency.
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Today, Slovenia is a prosperous country and has achieved the rank of a mainstream modern postindustrial economy. It advanced to the rank of advanced economies in 2007. It benefits from a well-educated and productive workforce, and its political and economic institutions are vigorous and effective. Its 2008 GDP per capita is now 91% of the European Union average. Although Slovenia has taken a cautious and deliberate approach to economic management and reform, with a heavy emphasis on achieving consensus before proceeding, its overall record is one that of success.
Slovenia today is a developed country that enjoys prosperity and stability, as well as a GDP per capita at 88% of the EU27 average. The tolar was the currency of Slovenia from 1991 until the introduction of the euro on 1 January 2007. It was subdivided into 100 stotins or cents. The ISO 4217 currency code for the Slovenian Tolar was SIT.
The name tolar comes from Thaler and is cognate with a dollar. As Slovene is one of the few languages with a grammatical dual, the correct inflections of the word “tolar” are 2 Tarja for 2 SIT, but Tolarji for 3 or 4 SIT. For 5 SIT or more, the word Tolarjev, genitive plural of tolar, is used.
The tolar was introduced on 8 October 1991. It replaced the 1990 Convertible version of Yugoslav dinar at parity. On 28 June 2004, the tolar was pegged against the euro in the ERM II, the European Union exchange rate mechanism. All recalled banknotes can be exchanged at the central bank for the current issue.
The timescale for conversion from the tolar to the euro operated differently from the first wave of European Monetary Union (EMU). The permanent euro or tolar conversion rate was finalized on 11 July 2006 at 239.640 tolars per euro. During the first wave of EMU, this period was only a day as the conversion rates were fixed on 31 December 1998 and euro non-cash payments were possible from 1 January 1999. Also unlike the first wave of EMU which had a three year transition period between 1999-2001, there was no transition period when non-cash payments could be made in both tolar and euro. The tolar was used for all transactions cash as well as non-cash until 31 December 2006 and the euro must be used for all payments cash as well as non-cash from 1 January 2007. However, as with the first wave of EMU, cash payments with the tolar could continue until 14 January 2007, but a change had to be given in euro.
In 1992, coins were introduced in denominations of 10, 20 and 50 Stotinov that is 10, 20 and 50 statins, 1 tolar, 2 Tolarja and 5 Tolarjev or 2 and 5 Tolars. 10Tolarjev or 10 tolars coins were added in 2000, followed by 20 and 50 Tolarjev or 20 and 50 tolars in 2003. The obverse designs all show the denomination, with animals native to Slovenia on the reverses.
The first banknotes were provisional payment notes issued on 8 October 1991, in denominations of 0.50, 1, 2, 5, 10, 50, 100, 200, 500, 1000 and 5000 Tolarjev. These notes all feature a bee on the obverse and Triglav, the tallest mountain in Slovenia, on the reverse. In 1992, the Bank of Slovenia introduced the following banknotes, all of which feature notable Slovenes. The reproduction of Slovenian currency is regulated by the National Bank of Slovenia.
On 1 January 2007, the tolar was supplanted by the euro. Slovenia issues its own euro coins, like all other nations in the Eurozone.