On 8 October 1991, Slovenia introduced its own currency, namely the tolar, and set out on a path of monetary independence. The tolar was one of the most important attributes of the Slovenian State. Monetary independence was a precondition in gaining the young country's international recognition. On 1 January 2007, the tolar, our trustworthy and stable currency, was replaced by the euro. Slovenia was the first of the ten countries to have joined the EU in 2004 to adopt the euro.

A start with provisional payment notes

Pending the issue of the tolar banknotes and coins, the provisional payment notes issued by the Republic of Slovenia were used as legal tender with a view to preventing a potential intrusion into the Slovenian monetary system. The conversion from Yugoslav dinars to provisional payment notes commenced in every financial institution throughout the country on 9 October 1991 and was concluded three days later; the former dinar was replaced by provisional payment notes at a rate of 1:1.

The tolar as the first currency unit of independent Slovenia

The country's monetary independence was established upon the expiry of a three-month moratorium on the implementation of the independence-related decisions determined in the Brioni Agreement; the National Assembly of the Republic of Slovenia adopted the Monetary Unit of the Republic of Slovenia Act, which introduced Slovenia's own currency, and the Use of the Monetary Unit of the Republic of Slovenia Act, which stated that the tolar was to be the only legal tender in Slovenia. 

The name tolar was chosen from among competing alternatives including klas, krona, karant, lipa, etc., and was brought into the world soon after midnight on 8 October 1991. It was subdivided into 100 cents. The circumstances in which the tolar was born were far from favourable. In addition to political instability, the former Yugoslav state experienced high rates of inflation and general public mistrust — a foreign currency, namely the Deutsche Mark, was the actual store of value. The initial exchange rate was set at 32 tolars for every Deutsche Mark. The main reasons for the final decision to adopt a floating exchange rate were the insufficient foreign exchange reserves in the Slovenian banking system, the borrowing capacity on the foreign financial markets and a broader social consensus. In several crises that affected some transition countries during the 1990s, this decision was proven to be correct. On 30 September 1992, the Bank of Slovenia put the first tolar banknotes in denominations of 100, 500 and 1,000 tolars into circulation. They were followed by banknotes in other denominations.

Slovenian tolar banknotes were designed by Miljenko Licul and featured portraits by the artist, Rudi Španzel. They were printed by a British company Thomas De la Rue. Tolar coins were issued by the Republic of Slovenia in a range of denominations and with a range of motifs. The Bank of Slovenia decided the date the coins would be put into circulation and was responsible for the professional and technical tasks relating to the issuing of the coins. The coins were designed by Miljenko Licul and Zvone Kosovelj, and modelled by the sculptor, Janez Boljka.

The euro as a national currency

The leading role in the adoption of the euro was played by the member state itself. In its accession negotiations and by signing of the Accession Treaty, Slovenia undertook to commit to join the Economic and Monetary Union and introduce the single currency, the euro, subject to meeting the required conditions. The assessment of a country's compliance with the criteria is published every two years (as a rule in October) in a Convergence Report. According to the provisions of the treaty, a member state can ask the European Commission and the European Central Bank to conduct an early assessment of its compliance with the criteria at any time during this two-year period. Slovenia made this move at the beginning of March 2006. At Slovenia's request, the European Commission and the European Central Bank provided separate opinions on 16 May 2006, assessing that Slovenia had met the criteria for adopting the euro on 1 January 2007. The European Council (EU heads of state and government) then adopted a political decision on the euro area expansion at its meeting on 15 and 16 June 2006 in Brussels; the legal basis for joining the monetary union was approved on 11 July 2006 by the EU Economic and Financial Affairs Council (ECOFIN) composed of the member states' economics and finance ministers. The Bank of Slovenia frontloaded 450,000 euro coin starter kits for the public, 150,000 euro coin starter kits for retailers, and 100,000 euro coin collector sets for numismatists and collectors. A total of 296.3 million coins worth €103.9 million with a combined weight of approximately 1460 tonnes were delivered to Slovenia through various channels. In all, 94.5 million banknotes were ordered, worth €2.175 billion and with a total weight of 76 tonnes. The coins, which are owned by the state, were minted by the Mint of Finland, while the euro banknotes were “borrowed” from the European Central Bank's strategic reserves. 

Since 1 January 2007, Slovenia has been using euro banknotes that share the same design across all countries and come in seven denominations (5, 10, 20, 50, 100, 200 and 500 euros) and euro coins minted in eight denominations (1, 2, 5, 10, 20 and 50 cents, and 1 and 2 euros). They do not differ in terms of design from country to country. The coins have a common side and a national side with country-specific motifs. Slovenia decided that each euro coin would have a different motif on the national side of Slovenian euro coins. Irrespective of different national sides all the coins are legal tender throughout the euro area.

Euro banknotes share the same design across all euro area countries

Each euro banknote depicts one of the European architectural styles: Classical, Renaissance, Baroque and Rococo, the age of iron and glass, and modern twentieth century architecture. The front sides feature windows and gateways symbolising the European spirit of openness and cooperation. The 12 stars of the EU represent the dynamism and harmony of contemporary Europe. The bridges on the back symbolise communication between the peoples of Europe and between Europe and the rest of the world. Since 2002, euro banknotes have become one of the most trustworthy means of payment in the world and a strong symbol of European integration. With a view to maintaining global confidence in them, the European Central Bank began introducing the Europa series banknotes, using the most advanced banknote production technology. The design of the new series banknotes is based on the "ages and styles" theme of the first series. In order to refresh the visual image, they were slightly modified; however, at the same time, a number of new and improved security features was introduced. At the same time this makes it easier to distinguish between the series. The introduction of the Europa series will take several years. First, a new 5 euro banknote came into circulation, in 2014, it was followed by a 10 euro banknote and on 25 November 2015, the new 20 euro banknote was issued.

Commemorative coins with different motifs

Each euro area country may issue a commemorative 2-euro coin once per year with a common European side and a national side featuring a motif marking an event of a broader international significance or of a great significance for the Member State. Slovenia has issued commemorative coins on the occasion of the 50th Anniversary of the Treaty of Rome (2007), the 500th anniversary of Primož Trubar’s birth (2008), the 10th anniversary of the third phase of Economic and Monetary Union (2009), the 200th anniversary of the establishment of the Botanical Garden in Ljubljana (2010), the 100th anniversary of the birth of the national hero, Franc Rozman - Stane (2011), the 10th anniversary of Euro Cash (2012), the 800th anniversary of visiting the Postojna Cave (2013), the 600th anniversary of the coronation of Barbara of Celje (2014), the 2000-year anniversary of Roman Emona (Ljubljana) (2015), and at the 30th anniversary of the flag of the European Union (2015). In 2016, it will issue a commemorative coin on the occasion of the 25th anniversary of the independence of the Republic of Slovenia (2016).

The euro today

The introduction of the euro brought about many benefits. Trade between member states increased, the euro contributed towards increased operational transparency because FX conversions were no longer needed, consumers were able to compare prices, the internal market strengthened, inflation was stabilised and interest rates fell. In addition, the euro has also been a symbol of European identity for the EU citizens that they can be increasingly proud of as the euro area expands. A stable euro plays an important role in the economic and political stability of European nations, and a stable euro offers Slovenia the prospect of economic development and a successful future.