 After the disintegration of the SFRY, in 1992 the former member republics – Montenegro and Serbia formed the Federal Republic of Yugoslavia.In the new country, the monetary system was re-centralized, wherein the National Bank of Montenegro lost its autonomy and became a regional office of the National Bank of Yugoslavia headquartered in Belgrade.A high level of monetary and financial centralisation was established, which was easy to be manipulated and which enabled many misuses due to the nonexistence of any legal state and financial discipline, and this resulted in hyperinflation in the period 1992 – 1994.