500 Kuna – Independent State of Croatia

The currency situation in the Independent State of Croatia (NDH) from its establishment in April 1941 was complex and unstable, directly reflecting the puppet state's contested sovereignty and wartime economy. The new regime immediately faced the challenge of replacing the former Yugoslav dinar, introducing the kuna as its official currency in July 1941. However, the kuna was not a strong, independent currency; it was pegged at par to the German Reichsmark and its circulation was limited, functioning more as a supplemental occupation script.

In practice, the monetary landscape was a chaotic mosaic of concurrent currencies, undermining the NDH's economic authority. Alongside the kuna, the German Reichsmark, the Italian lira, and even the old Yugoslav dinar remained in widespread use, especially in their respective zones of military and political influence. This fragmentation was a direct result of the NDH's division into German and Italian spheres of control, with each occupying power promoting its own currency for military procurement and local transactions, thereby stifling the kuna's legitimacy.

The period was characterized by severe inflation, which accelerated dramatically as the war turned against the Axis powers. The NDH government, engaged in extensive warfare and persecution, resorted to printing money to cover its deficits, leading to a rapid devaluation of the kuna. By 1945, the currency had become virtually worthless, mirroring the complete collapse of the state itself. Thus, the NDH's currency saga transitioned from a politically symbolic creation to an instrument of fiscal expediency, ending in the hyperinflation typical of a disintegrating wartime regime.