The shareholder payout of INA, which will take place this week, will, according to analysts at Raiffeisen Bank, intensify the demand for the domestic currency and thus lead to a strengthening of the domestic currency once again.
They add that last week’s start of the mandatory reserve maintenance period could significantly contribute to this. The decision of the HNB Council to abolish the border mandatory reserve will also increase the supply of foreign currency in the domestic market and affect appreciation pressures on the domestic currency. In the long term, RBA analysts expect depreciation pressures on the kuna to prevail, and by the end of the year, the exchange rate will again move above 7.20 kuna for one euro. On a global level, the dominant influence on the markets will continue to be the crisis in the financial system and its impact on the global economy. Additionally, the possibility of further reductions in reference interest rates in the most developed countries cannot be ruled out. Among the important announcements this week is the release of consumer and producer prices in the eurozone and the USA, which should confirm the global weakening of inflationary pressures.
