This coin was minted in the The Socialist Federal Republic of Yugoslavia often called the SECOND Yugoslavia during the rule of Josip Broz Tito, president for life. The first Yugoslavia, the Kingdom of Yugoslavia, was a conglomeration of kingdoms consisting of the kingdoms of the Serbs, Croats and Slovenes. It was invaded by the axis power in World War II and ceased to exist.

The communist federation modeled after the Soviet Union had its capitol in Belgrade and consisted of Socialist republic of Bosnia and Herzegovina, Socialist republic of Croatia, Socialist republic of Macedonia, Socialist republic of Montenegro, and the Socialist republic of Serbia. Serbia encompassed the Socialist autonomous province of Kosovo, Socialist autonomous province of Vojvodina and the Socialist republic of Slovenia.

Corruption, ethnic violence, the collapse of the Soviet Union and power struggles led the component states to break from the federation. Leaving just Serbia and Montenegro. Montenegro declared its independence on June 3rd 2006, Serbia followed suit on the 5th.

The area (Balkan Peninsula) has a long rich history going back to the Neolithic era. The region was controlled by Greeks, Illyrians, Thracians, the Roman Empire conquered most of the region (many roman coins are found in this region) and by the end of the 1800s it was under the control of the Ottoman Empire.