The denar was introduced on April 26, 1992. At the time of its introduction, the currency was equivalent to the Yugoslavia Convertible dinar.
On May 5, 1993, the denar was reformed from being an Old denar to a New denar, with one New denar (MKD) being equal to 100 Old denar (MKN).
Currently, the exchange rate regime in the Former Yugoslav Republic of Macedonia (FYROM) is what is referred to as a "managed float."
The exchange rate of the denar is established on the basis of supply and demand of foreign exchange markets.
The denar exchange rate against the euro serves as a fundamental of the Former Yugoslav Republic of Macedonia (FYROM) monetary policy.
Money supply and interest rates are dictated by the exchange rate target, which (as of mid-2005) is set at 61 denars to one euro, and has remained more or less constant at that level. With this exchange rate target, the country's central bank (the National Bank of the Republic of Macedonia) has been maintained a stable denar exchange rate against the euro.