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How are Croatians coping with the euro? Canva

How are Croatians coping with the euro?

Written by  Jan 07, 2023

Almost a week after Croatia's entry into the eurozone and the introduction of the euro as the official currency, the European Commission's survey showed that Croatia's transition to the euro is progressing well in the initial phase. The transition began on January 1, 2023, as an important milestone for Croatia and the entire European Union. Of course there have been bumps along the road but in general the new Croatian currency is going according to plan.

The first day that the majority of cash payments in stores was in euros (51 percent) was on the 5th of January 2023. In the vast majority of transactions - as many as 93 percent – customers change was returned to them exclusively in euros. 35 percent of the surveyed Croatian citizens stated that they carry only euro banknotes with them.

The withdrawal of Kuna banknotes and coins from circulation began in December 2022, and by December 31, 55 percent of Kuna banknotes and a third of Kuna coins had already been withdrawn from circulation.

The Croatian retail sector is coping relatively well with the transition process and the parallel use of two currencies. No major problems with waiting in lines or problems with cash registers have been reported. Conversion at ATMs (cash dispensers) is also proceeding smoothly, with 70 percent of all ATMs in Croatia already dispensing euro banknotes from the 1st of January 2023. The number and volume of withdrawals remained at levels comparable to those before the changeover to the euro.

Croatian authorities are taking active measures in accordance with the rules on the introduction of the euro (the "Act on the introduction of the euro as official currency in the Republic of Croatia") to protect consumers and eliminate concerns about unfair price increases during the transition period.

The dual presentation of prices in Kuna and euros became mandatory on September 5, 2022, and will be applied until December 31, 2023. The Code of Ethics was also introduced to ensure the stability of the prices of goods and services and to help companies to calculate correctly and without unjustified increases and show prices. The national inspection body is in charge of price monitoring and control and has the authority to take appropriate measures in the event of a violation.

The commission will continue to monitor Croatia's transition to the euro and will continue to measure the experience of Croatian citizens regarding the transition in the coming weeks.

 

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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