Tuesday, 21 January 2025

Governor Vujčić Hails Euro Introduction as His Legacy, Secures Third Term

Written by  Jul 20, 2024

The longest-serving governor ever of the Croatian National Bank commented on gaining confidence for a third term in the Croatian Parliament and said that he primarily focuses on his job, leaving others to judge whether he is doing it well.

"The trust I received is obviously a judgment that I did my job well," said Governor Boris Vujčić on the main news program of HTV.

What marked his second term was the introduction of the euro. He said that this was the biggest project he participated in and "the largest monetary reform in Croatia after independence and the introduction of the national currency."

"What we said from the beginning as the biggest advantages of the euro have come true. This means that the euro has eliminated the exchange rate risk, which was the biggest risk in the Croatian financial system because Croatia was an extremely euro-central country. Therefore, the Croatian National Bank practically ensured the entire economic system, the corporate sector, the state, and the public from exchange rate risk by maintaining a stable exchange rate," Vujčić explained.

Regarding the claims about losing monetary sovereignty, he said they are unfounded. "We haven't actually lost anything; we have gained a lot," he added. "Eliminating exchange rate risk has led to a reduction in the country's risk premium, a reduction in the risk premium for Croatian companies, and lower interest rates than would have been the case if we hadn't entered the Eurozone," he continued.

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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