APPRECIATION OF KUNA GOES ON

ZAGREB, July 13 (Hina) - The kuna is continuing to be stronger and stronger. According to Friday's report of the Croatian National Bank (HNB) on the exchange rate compared to the report from Thursday, the kuna appreciated against the euro and the German mark by 0.45 percent. The mean rate of the one German mark equivalent to 3.667721 kuna has been the lowest since the late September 1998. According to Friday's exchange rate, the mean rate of one euro was equivalent to 7.173438 kuna. Thus, both the mark and euro have depreciated against the kuna by 1.06 percent since the start of this summer season. The appreciation of the kuna has continued despite Wednesday's intervention of the central bank in the foreign exchange market. On 11 July the HNB bought 143,650,000 euro (almost one billion kuna) at the average rate of 7.163112 kuna. Many financial experts and business people hold that the further appreciation of the kuna will produce a negative influence on the current tourist season. The central bank's interventions aimed at curbing the appreciation of the national currency have so far yielded no results. A rise in the value of the kuna is also ascribed to processes which render the Croatian economy more dynamic. (hina) sb ms