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Croatian financial institutions preparing for busy year as Euro introduction looms

Written by  Dec 31, 2021

Due to the changeover from the Kuna to the euro, the Croatian National Bank (CNB) has a busy year ahead. Croatia is due to adopt the Kuna as the official currency from the beginning of 2023 and this last year of the Kuna is sure to be a busy one for financial institutions.

More than a billion coins, both Kuna and Lips need to be withdrawn from the financial system. These coins could be used to fill 260 trucks, and these coins will be moved to a secret location provided by the Ministry of Defence and they will be stored for three years.

The CNB still holds around 760,000 Croatian dinars in its vault, which ceased to be used as a currency in 1994 and can no longer be exchanged.

"The changeover to the Euro will cost a total of about 915 million Kuna in this three-year period. At most, the purchase of banknotes from the European Central Bank will cost around 880 million Kuna, while the coins will be produced in Croatia in the mint", said Tihomir Mavriček, the Vice Governor of the CNB.

Citizens are also expected to return about 500 million banknotes, which will be gradually destroyed in the National Bank. Citizens have an unlimited time limit for free exchange of Kuna banknotes for euros at the CNB, and three years for coins.

"Approval from the EU is expected in the summer, and from August, prices will be expressed in both Kunas and Euros," adds Mavriček.

Double payment will be possible only two weeks after the introduction of the Euro. From 1 to 15 January 2023, citizens will be able to pay in Kunas in shops or cafes, but change will be given in Euros.

 

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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