On November 2, 1999, Montenegro began a major currency reform leading to the introduction of the German mark as the legal tender. This and the subsequent liberalization of Montenegro's monetary – exchange and trade regimes led to the introduction of the euro in 2002. But there is very limited,...

Recent unilateral dollarizations in Ecuador and El Salvador (that adopted the US dollar) and Montenegro (that adopted the euro) showed that unilaeral monetary unions can be implemented and sustained even under harsh economic conditions. The paper reviewes recent experience with such...