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.
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