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RECORD-BREAKING FOREIGN CURRENCY DEPOSITS

ZAGREN, Jan 6 (Hina) - Judging by the record-breaking amounts of foreign currency deposits made and the huge lines seen in banks towards the end of last year, Croatians had kept imposing sums of foreign currency, primarily German marks, at home. The exchange of European Monetary Union (EMU) currencies into the euro has led to the transfer of said sums onto bank accounts, which is the simplest way of conversion costing citizens nothing. Most banks have announced they will be converting former EMU currencies, which citizens deposit on foreign currency and savings accounts, without commission until the end of February. Bankers estimate that about two thirds of recent foreign currency deposits will remain in the banks' deposit sphere. Some polls on saving have shown that a little more than one third of people questioned intend to keep their savings at home. The continued increase of foreign currency dep
ZAGREN, Jan 6 (Hina) - Judging by the record-breaking amounts of foreign currency deposits made and the huge lines seen in banks towards the end of last year, Croatians had kept imposing sums of foreign currency, primarily German marks, at home. The exchange of European Monetary Union (EMU) currencies into the euro has led to the transfer of said sums onto bank accounts, which is the simplest way of conversion costing citizens nothing. Most banks have announced they will be converting former EMU currencies, which citizens deposit on foreign currency and savings accounts, without commission until the end of February. Bankers estimate that about two thirds of recent foreign currency deposits will remain in the banks' deposit sphere. Some polls on saving have shown that a little more than one third of people questioned intend to keep their savings at home. The continued increase of foreign currency deposits is indicative of the citizens' confidence in the banking system, bankers maintain. The growth of overall foreign currency deposits in business banks in the first nine months of 2001 was 30 percent in real terms, with foreign currency deposits amounting to 63.5 billion kuna towards the end of November. Citizens' deposits accounted for around 85 percent of said figure. It is estimated foreign currency deposits have now reached 70 billion kuna. (US$1 = 8.16 kuna) (hina) ha

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