Kuna Exchange Rate to Remain at 7.53 for EUR Until Entry to Eurozone

The governor of the Croatian National Bank (HNB), Boris Vujcic, said that the exchange rate of kuna to euro would be kept at 7.53 until the country enters the Eurozone.

– The exchange rate of 7.5345 kunas for one euro will be kept with slight adjustments until we enter Eurozone. This is most probably the exchange rate at the moment we enter Eurozone – Vujcic said at the gathering titled The Day of Great Plans, Hina reports.

He rated the entry to the European exchange rate mechanism (ERM II) this July as Croatia's great success.

– We made our best effort and, so to say, pushed our way in, because any kind of delay would have extended that deadline by at least a year – the governor said.

Vujcic said that in the preceding six months unprecedented monetary policy measures had been taken and added that they had carried out a range of operations to keep the financial market liquid, through a combination of various measures of operations, but also by buying government securities.

– We did this by combining various measures. We had an effect of creating liquidity of 29 billion kunas (EUR 3.84 billion). All this has helped us keep the exchange rate and the banks stable, as well as the funds and the entire financial system – he emphasized.

According to him, when it comes to foreign exchange liquidity, Croatia is now at a level higher than before the coronavirus crisis.

– We are now able to comfortably maintain this situation in the market until we enter Eurozone – Vujcic said and added that the exchange rates even during 2020 and the coronavirus crisis were at an all-time minimum and that the trend would continue with the entry to Eurozone.

Hrvatska narodna banka Zagreb

HNB

Boris Vujčić

kuna

kuna exchange rate

Eurozone

euro exchange rate

ERM II

monetary politicy

liquidity

foreign exchange liquidity

interest rates