KUNA CONTINUES TO APPRECIATE

ZAGREB, May 3 (Hina) - The kuna has been appreciating significantly in comparison to most foreign currencies and the German mark mean rate on the Croatian National Bank exchange rate amounted to 3.831603 kuna whereas the euro equalled 7.493965 kuna, which is a 2.19 percent drop in the value of the German mark and euro as against March. The HNB reports that the upward movement of the kuna value as against the euro is a result of an additional influx of foreign currency in April, caused by increased tourist activities during Easter holidays and payments of citizens working abroad. The increased foreign currency offer in the first three months of this year is a result of the state's going into debt by selling euro and yen bonds. In an attempt to slow down the appreciation of the kuna, the central bank bought from commercial banks 50.8 million euros at the average rate of 7.5395 kuna for one euro on April 26. The trend of mild nominal appreciation of the kuna rate against the euro in the second half of March continued increasing in April as well. Compared to the rate in late March, the nominal rate of 7.53 kuna for one euro, reported on April 30, shows that the kuna has appreciated by two percent, i.e. 0.94 percent as against the end of last year. According to HNB data, the average kuna rate to the euro appreciated by 0.9 percent in the first four months of this year as against the same period last year. During April, the kuna appreciated as against the US dollar (4.17%), the British pound (3.02%), the Swiss franc (2.72%) and the Slovene tolar (2.12%). (hina) rml