Goodbye Kuna! Euro is the official Croatian currency from 2023!

Goodbye Kuna! Euro is the official Croatian currency from 2023!

Euro is the official Croatian currency from 2023! The Republic of Croatia has entered the European Exchange Rate Mechanism (ERM II), which is a key step in the process of introducing the euro. It has been more than five years since the last country, Lithuania, joined the eurozone, so the release of Croatia and Bulgaria into the ERM-2 mechanism, which is a kind of waiting room before the introduction of the euro, is a big step for the entire eurozone. The most important reason is to raise the chance of attracting investments, as well as a more favorable price of borrowing.

1€ = 7,53450 kuna

After consultations with the Commission, the Economic and Financial Committee, it was decided that the central exchange rate of the kuna for the euro would be 7.53450 kunas. Until we introduce the euro, the kuna exchange rate will be allowed to fall or rise by a maximum of 15 percent. Otherwise, a member state wishing to adopt the euro must spend at least two years in the ERM II mechanism before introducing a common European currency, which means that Croatia can count on joining the eurozone in 2023 at the earliest.

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Euro is the official Croatian currency from 2023

The European Central Bank (ECB) today decided to establish close co-operation with the Croatian National Bank (HNB), making the Croatian central bank part of a single supervisory mechanism even before joining the eurozone, meaning the ECB takes over the supervision of Croatian banks.

In the photo below you can see the countries that already have the Euro in the European Union (orange) and those that don’t (yellow):

Goodbye Kuna! Euro is the official Croatian currency from 2023!

The euro is a tangible symbol of European unity

Ursula von der Leyen, President of the European Commission said:

The euro is a tangible symbol of European unity, prosperity, and solidarity. This decision recognizes the important economic reforms already undertaken by Bulgaria and Croatia while confirming the continued attractiveness of Europe’s single currency. We will continue to stand with both countries as they take their next and final steps towards joining the euro area.”

Valdis Dombrovskis, Executive Vice-President for an Economy that works for People, said:

I am delighted to welcome Bulgaria and Croatia as members of the Exchange Rate Mechanism II, an important milestone on the road to adopting the euro as their national currency. Both countries have worked hard to get to this point, even in the middle of the coronavirus pandemic. It is a testament to the attractiveness of our common currency – still relatively young but highly successful globally. Good news for Bulgaria, Croatia, and for the entire euro area.”

Paolo Gentiloni, Commissioner for the Economy, said: 

Bulgaria and Croatia have made huge efforts to prepare for entry into ERM II and the Banking Union. Today, those efforts have paid off. In a time of crisis and uncertainty, this decision sends a message of confidence in the euro and clarity that Bulgaria and Croatia will be the next countries to join. As they take this key step towards our common currency, we as Europeans take a new step towards ever closer Union.”

Andrej Plenković, Prime Minister of Croatia, said: 

“Through the agreement on joining the EU and the confirmation in the referendum, Croatia decided in June 2011 to join the eurozone. With this, we have further strengthened Croatia’s reputation in the economic and financial field, in the markets, this means a new legitimacy for us.”

Euro is the official Croatian currency from 2023. But when? The official date of the currency change could be January 1, 2023 at the earliest.

Euro is the official Croatian currency from 2023! Don’t forget to discover the most beautiful and interesting sights in Croatia. Find, compare, and book sightseeing tours, attractions, excursions, things to do, and fun activities.

Source:
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1321 (11.05.2020.)
https://www.index.hr/vijesti/clanak/hrvatska-uvodi-euro-najranije-2023-godine-objavljeno-po-kojem-tecaju/2197287.aspx?index_tid=30572 (11.05.2020.)
https://www.jutarnji.hr/vijesti/hrvatska/hrvatska-euro-uvodi-vec-2023-godine-evo-po-kojem-ce-se-tecaju-mijenjati-za-kune-15007461 (11.05.2020.)

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