The high level of euroization in Serbia reflects a history of macroeconomic instability (hence a dearth of local currency deposits), as well as abundant availability of foreign currency funding pre-crisis, and underdeveloped financial markets. Dinarization will therefore be a long-term process to gradually transform both sides of the balance sheets of both banks and nonbanks.
This long-term process will consist of a series of small steps that must be well coordinated. Some of these steps are already being taken, but there is no time to waste. What gives me hope is the fact that reducing the level of euroization is certainly possible. Several countries have achieved sustained reductions in euroization or dollarization levels in the recent past.