64 Days Until the Introduction of the Euro: Depositing Kuna in Banks Recommended as the Simplest Conversion Method

Depositing kuna into bank accounts is the cheapest and simplest way to convert them into euros, stated today the Governor of the Croatian National Bank (HNB) Boris Vujčić and Prime Minister Andrej Plenković to the citizens.

They made this statement at the Euro Day event in Zagreb’s Cvjetni trg, held as part of the information campaign ‘Euro – our money’, organized by the Government and HNB, which is being conducted with co-financing from the European Union.

There are 64 days left until the introduction of the euro, and as Vujčić pointed out, in the current final phase of preparations, euro coins are being minted, which started in July, and the pre-supply of banknotes to banks has also begun, which, along with Fina and the Croatian Post, will play a significant role in the distribution of money to ensure a smooth introduction of the new currency on January 1.

Vujčić stated that the conversion for citizens will be very simple and free of charge, and it is best to bring cash to deposit in banks, which will then be automatically exchanged for euros on January 1, at a conversion rate that is more favorable than the one currently available.

The established fixed conversion rate is 7.53450 kuna for one euro. The governor urged citizens to deposit their money in banks as soon as possible and not to wait until the last days to avoid crowds.

– We know that Croatians still hold a lot of cash outside of banks. In recent months, there has been a significant increase in deposits, but we estimate that many citizens still keep cash at home, and it would be good for them to bring it to banks by January 1 to facilitate the conversion – Vujčić stated.

– Deposit all the kuna you have into your bank accounts; they will be converted into euros immediately without any additional costs. This is the simplest and best way – Plenković advised the citizens.

He mentioned that Croatia’s membership in the euro area is a political project because by joining the European Union, Croatia accepted membership with all that it entails.

Among other things, he reminded that most of the citizens’ deposits in banks are in euros, two-thirds of trade exchanges occur with euro area members, from which about two-thirds of tourists who vacation in Croatia come.

– All of this indicates that we are going where we are practically already, strengthening our position. When we add to this the entry into the Schengen area, it means that as of January 1, 2023, Croatia has achieved all its strategic goals – Plenković said.

Finance Minister Marko Primorac stated that the benefits of introducing the euro are obvious, permanent, and already present, as reflected in the increase in credit ratings by three leading global rating agencies, which will positively affect the borrowing costs of the state, the economy, and citizens.

Since the beginning of the Russian aggression against Ukraine, Croatia has been the only country in the world to record an increase in credit ratings from all rating agencies, Primorac emphasized.

He also mentioned that numerous businesses have joined the Ethical Code, which guarantees that there will be no unjustified price increases. Given the present inflationary pressures, many claim that they have occurred due to the introduction of the euro, but Primorac pointed out that other countries in Europe and the world are facing these pressures as well. The effects on inflation due to the introduction of the euro are estimated to be between 0.2 and 0.4 percent.