IV.

Economy

The economy of Montenegro is based on agriculture and animal husbandry; around 60 per cent of the labour force was estimated to be employed in the agricultural sector in the early 1990s. Crops include cereals, tobacco, vegetables, grapes, figs, and olives. The main industries are forestry, and salt- and tobacco-processing. Bauxite, lignite (brown coal), and iron ore were the main minerals produced in 1992. The Montenegrin economy suffered from the economic sanctions imposed by the UN on Serbia and Montenegro in May 1992 because of continuing Serbian military activities in Bosnia and Herzegovina and in Croatia. In addition, Montenegro was badly affected by the diversion of labour, medicines, and economic resources for the war. The republic has its own central bank. In November 2000 Montenegro abandoned the Yugoslav dinar as its national currency and adopted instead the Deutschmark as the only legal tender in the republic; on January 1, 2002, the Deutschmark was replaced by the Euro. As at early 2007, 0.77 Euros equalled US$1.