How that happened
In 1999, still in a state union with Serbia, Montenegro abandoned the Yugoslav dinar for the German mark to escape hyperinflation. When the mark became the euro in 2002, Montenegro went with it. There was no agreement with the European Central Bank and there still is not. The country uses the currency without any say in it and without the right to print it.
The practical result is convenient for visitors and awkward for the state: no exchange risk on your holiday, no monetary policy for the government.
Cards, and where they stop
On the coast and in Podgorica, cards work almost everywhere. Contactless is normal. Inland and in the north, the picture changes quickly.
- Konobas and family restaurants in villages are frequently cash only, including some very good ones.
- Mountain huts and katuns take cash and nothing else. There is often no signal, let alone a card terminal.
- Boat operators, guides and taxi drivers vary. Ask before you get in rather than after.
- Petrol stations take cards everywhere, including the small ones.
- American Express is accepted rarely. Visa and Mastercard are fine.
Cash machines and what they cost
ATMs are common on the coast and in every town of any size. Two charges apply and they are separate: the machine's own fee, and whatever your bank adds.
| Typical charge | |
|---|---|
| Bank-operated ATM withdrawal | €3 – €5 |
| Independent machine in a tourist area | €5 – €8 |
| Maximum per withdrawal | usually €300 – €500 |
| Dynamic currency conversion, if you accept it | 3 – 6% worse rate |
When the machine offers to charge you in your home currency, decline. That is dynamic currency conversion and the rate is always worse than your own bank's. Choose euros and let your bank do the conversion.
Fewer, larger withdrawals beat several small ones, because the fee is per transaction rather than per euro.
Tipping
Not obligatory and not resented. Rounding up is normal in a café. In a restaurant, ten per cent for good service is generous rather than expected. Guides and boat skippers are usually tipped by people who enjoyed the day, in cash, at the end.
The tourist tax
Around €1 per person per night, collected by whoever you are staying with and often not mentioned until check-out. It is a real tax, not a scam, and it comes with a registration slip. Keep that slip — it is proof you registered your stay, which is a legal requirement within 24 hours of arrival, and the accommodation normally does it for you.
