Collector's Guide · Yugoslavia · Hyperinflation Notes

The Yugoslavia 500 Billion Dinara Note (1993): A Collector's Guide to P-137

The largest denomination Yugoslavia ever printed carries a children's poet on its face and the second-worst hyperinflation in recorded history in its story. Here is what the 500 billion dinara note is, how it came to exist, and what separates an ordinary example from a great one.

What is the Yugoslavia 500 billion dinara note?

It is the top denomination of the second 1993 banknote series of the Federal Republic of Yugoslavia, the state that remained after the breakup of the Socialist Federal Republic in 1991 and 1992. Four notes from that late-1993 series appear regularly in collections: 500 million (P-134), 5 billion (P-135), 50 billion (P-136), and the 500 billion (P-137). Each one was printed because the one before it had stopped buying anything.

The face carries Jovan Jovanović Zmaj, the nineteenth-century physician and poet whose children's verse is still taught in Serbian schools. The back shows the National Library of Serbia in Belgrade. The choice of a beloved poet and a library, at a moment when the currency was failing by the hour, is part of why the note resonates with collectors: the design is calm, and the number on it is not.

How bad was the Yugoslav hyperinflation?

Second only to Hungary's 1946 pengő collapse. Economist Steve Hanke's peak estimate for Yugoslavia is about 313 million percent per month in January 1994, which works out to prices doubling roughly every day and a half. Between 1990 and 1994, the government redenominated the currency four times, removing 22 zeros in total. The 500 billion note sits at the very end of that sequence.

A note on framing: the hyperinflation is what makes this note collectible. The people who carried these dinara through 1993 lived through sanctions, war on their borders, and a currency that lost value between breakfast and dinner. The note is a document of that year, and we treat it as one.

Why did the 500 billion dinara note stop circulating so quickly?

By late January 1994 the note's purchasing power had fallen far enough that Dragoslav Avramović, the newly appointed central bank governor, replaced the entire system. His reform launched the novi dinar, pegged to the German mark and backed by hard-currency reserves, and it worked almost immediately. Monthly inflation dropped from hundreds of millions of percent to near zero within weeks. The 500 billion note went from the largest bill in the country to a curiosity in about six weeks, which is why so many survive in crisp condition: people simply stopped spending them.

Twenty-two zeros in four years. The 500 billion dinara is the last of them, and it lasted about six weeks.

What should collectors look for in a 500 billion dinara note?

Condition first. Because the note was withdrawn quickly, uncirculated examples are available, and that makes the difference between a handled note and a gem note visible in price. Raw crisp UNC examples are the entry point. Graded examples at PMG 65 and 66 EPQ are the standard for type collections. PMG 67 EPQ and PCGS 68 PPQ are scarce; a 68 on this issue means the paper is essentially flawless, and dealers price it accordingly.

Collectors building a Yugoslav hyperinflation set usually pair the 500 billion with the 500 million (P-134) and 5 billion (P-135) from the same year, then reach back to the 1989 500,000 dinara (P-98), the note from the first hyperinflation wave before the 1990 redenomination. The four together tell the whole story in one page of an album. Our Hungary 1946 guide covers the only episode that ran worse, and the five worst hyperinflations post places Yugoslavia in the full ranking.

Frequently asked questions

Is the 500 billion dinara the largest banknote ever printed?

No. Hungary's 1946 100 million b.-pengő (10 to the 20th power pengő) holds that title, and Zimbabwe's 100 trillion is larger by face value. The 500 billion dinara is the largest Yugoslavia ever issued and among the largest denominations in European history.

Who is on the 500 billion dinara note?

Jovan Jovanović Zmaj (1833–1904), a Serbian poet and physician best known for his children's poetry. The reverse shows the National Library of Serbia in Belgrade.

How much did the note buy when it was issued?

Very little, and less each day. Contemporary accounts describe the 500 billion buying a few basic groceries at issue in December 1993 and effectively nothing by the reform six weeks later. Exact conversions depend on the day, which is the point.

Can I still spend it in Serbia?

No. The 1994 reform replaced all prior dinara, and Serbia has since issued its own currency. The note is a collectible, not legal tender.

What grade should I buy?

For a type collection, crisp uncirculated raw or PMG 65–66 EPQ. For a registry set or a centerpiece, PMG 67 EPQ or PCGS 68 PPQ, which are scarce on this issue. Our raw vs. graded guide covers when the premium is worth paying.

Why are so many uncirculated examples available?

The note circulated for only weeks before the January 1994 reform. Many were printed, few were spent, and bank stocks were never fully released.

Sources

• Standard Catalog of World Paper Money (Pick), Yugoslavia 1993 second issue (P-134 to P-137)
• Hanke, S. and Krus, N., "World Hyperinflations," Cato Institute Working Paper (2012)
• National Bank of Serbia, historical notes on the 1994 monetary reform