Yesterday, the European Council adopted the decision on the adoption of the euro in Croatia, starting on 1 January 2022. This would make Croatia the 20th member state of the eurozone, while at the same time, fixing the exchange rate to 1 EUR=7.53450 HRK.
The decision comes on the back of the favorable assessments of the European Commission and the European Central Bank, according to which, Croatia fulfilled the criterion for the euro adoption. The adoption of the euro will remove the foreign exchange risk, making Croatia more attractive in terms of investments, while at the same time, more resilient to crisis.
The exchange rate for when Croatia enters the EU has been fixed to 1 EUR=7.53450 HRK, which is the same exchange rate that was set up under the European Exchange Rate Mechanism II. The Croatian National Bank will continue monitoring the EUR/HRK exchange rate until the adoption.
EUR/HRK Exchange Rate (2010 – Q2 2022, QoQ)
Source: HNB, InterCapital Research
