The Central Bank of Montenegro is the main monetary authority in Montenegro.
It was established by the Law on Central Bank in November 2000 and commenced its operations on 15 March 2001, which makes it one of the youngest central banks in the world.
In the Constitution of Montenegro, the Central Bank of Montenegro is defined as “an independent organization, accountable for monetary and financial stability and functioning of the banking system.”
With a view to meeting the obligations assigned to it in the Constitution, the Central Bank, inter alia, supervises the banking system; manages and oversees the national and international interbank payment system; acts as the fiscal agent, banker and advisor for the state; and conducts regular macroeconomic analyses and communicates economic policy recommendations to the Government.
Montenegro is a dollarized (euroised) economy since its monetary system is based on the euro, as the official currency as of end-March 2002. Montenegro introduced dollarization regime as of 2 November 1999 when it established a dual currency regime (Dinar/Deutsche Mark). From January 2001, the Deutsche Mark became the only official currency and this lasted until the introduction of the euro in March 2002.
One of the strategic objectives of the Central Bank of Montenegro is to join the Eurosystem, which would officially make Montenegro a part of the Economic and Monetary Union (EMU).