National Bank of Yugoslavia

the central bank of issue and main credit institution of the Socialist Federal Republic of Yugoslavia. Founded in January 1946. Among the bank’s functions are the regulation of currency circulation, the direction of the country’s overall credit and foreign exchange policy, the arrangement of credit and clearing operations involving other countries, the establishment and maintenance of gold and foreign currency reserves, and the purchase and sale of gold, silver, and other precious metals.

Since 1961, the National Bank of Yugoslavia has not dealt directly with enterprises and organizations; as a rule it provides credits only to commercial banks. In certain cases it finances government projects deemed to be of general importance to the state, such as the funding of deficits in the federal budget or major defense expenditures. All commercial banks in Yugoslavia must maintain mandatory reserves in the National Bank, on a scale that is determined by the latter.

Prior to 1973, the National Bank of Yugoslavia had the exclusive right to buy and sell foreign currency, but since January 1 of that year, all foreign currency operations in Yugoslavia have been conducted on an exchange market. The National Bank is a main participant in this market. The bank’s main offices are in Belgrade, with one foreign agency in New York. The bank’s total balance as of Jan. 1, 1971, was 47.5 billion dinars, more than 75 percent of which consisted of short-term credits.