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Croatia moves a step closer to the Euro

By  Dec 16, 2018

The governor of the Croatian National Bank, Boris Vujčić, announced that Croatia will soon send a letter of intent regarding the introduction of the euro as the official currency.

"The first step to entry into ERM II is the sending of a letter of intent to enter the ERM II exchange rate mechanism and this will be sent relatively quickly. In addition to the formal disclosure of intent to enter the exchange rate mechanism, all activities planned to make Croatia become credible as a candidate for the exchange rate mechanism need to be carried out. Entrance to ERM II could probably be about a year after the letter's intentions, so sometime in 2020," Vujčić said in a conversation for the Croatian newspaper Vecernji List.

He added that "There are no formal criteria for entry into ERM II, but current members of the European area must accept Croatia as a good candidate. The only additional request for entry into the exchange rate mechanism is to join so-called close co-operation with the Single Supervisory Mechanism (SSM).”

Although there is no official date when Croatia will adopt the Euro and ditch the Kuna it is widely believed that this will happen between 2021 and 2023.