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HNB: STRONGER DEPRECIATION OF KUNA WOULD CAUSE NEGATIVE EFFECT

ZAGREB, Nov 10 (Hina) - The Croatian National Bank (HNB) believes that the stronger depreciation of the kuna at this moment would produce negative effects, and, therefore, the central bank will continue making efforts aimed at maintaining the stability of the exchange rate of the kuna, read the October bulletin of the HNB. Reacting upon statements given by some Croatian officials, including President Stjepan Mesic, and some economists on the necessity to devalue the national currency, the HNB has expressed the opinion that such statements can trigger off a psychosis owing to expectation of possible inflation. The HNB asks such persons to say then clearly to pensioners and employees that their real income would have smaller value in the case of devaluation. The central bank has assessed that trends in the currency rate of the kuna remain stable.(hina) jn ms
ZAGREB, Nov 10 (Hina) - The Croatian National Bank (HNB) believes that the stronger depreciation of the kuna at this moment would produce negative effects, and, therefore, the central bank will continue making efforts aimed at maintaining the stability of the exchange rate of the kuna, read the October bulletin of the HNB. Reacting upon statements given by some Croatian officials, including President Stjepan Mesic, and some economists on the necessity to devalue the national currency, the HNB has expressed the opinion that such statements can trigger off a psychosis owing to expectation of possible inflation. The HNB asks such persons to say then clearly to pensioners and employees that their real income would have smaller value in the case of devaluation. The central bank has assessed that trends in the currency rate of the kuna remain stable. (hina) jn ms

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