ZAGREB, March 6 (Hina) - With the sale of euros to commercial banks, the Croatian National Bank (HNB) on Wednesday intervened in the foreign exchange market for the fourth time this year in a bid to counter a further depreciation of
the national currency in comparison to the euro.
ZAGREB, March 6 (Hina) - With the sale of euros to commercial banks,
the Croatian National Bank (HNB) on Wednesday intervened in the
foreign exchange market for the fourth time this year in a bid to
counter a further depreciation of the national currency in
comparison to the euro. #L#
At yesterday's auction, the central bank sold 82.7 million euros at
the exchange rate of 7.68 kuna equivalent to one euro. Last week,
HNB officials announced the central bank would not let the exchange
rate surpass the level of 7.7 kuna.
The amount sold on Wednesday is the biggest with which the HNB has
intervened this year in the foreign exchange market. So far this
year, the HNB has sold a total of 247.8 million euros to commercial
banks in those transactions.
Since the beginning of 2003, the mean rate of exchange of the euro as
against the kuna at the HNB rate lists has risen by more than 2.6
percent.
According to the director of the HNB research and analyses
department, Evan Kraft, the depreciation of the kuna is usual in
first months of the year, but this year the central bank's decision
to restrict a rise in the credit volume offered by commercial banks
had a bearing on the increased foreign exchange claims. The HNB also
asks of banks to cover daily 35 percent of foreign currencies'
obligations by foreign exchange claims.
(hina) ms