ZAGREB, March 10 (Hina) - Although the kuna exchange rate has been stabilised in the last couple of days, the Croatian National Bank (HNB) advisory board has decided that the HNB should send out a clear signal that it does not intend
to give up the protection of the stability of prices and the national currency, it was said at a session of the HNB advisory board, held on Wednesday under the chairmanship of HNB Governor Marko Skreb. The session decided that as of March 15 the obligatory kuna reserves of banks and saving banks should be increased by one per cent, while HNB's interest rate on collateral loans should be increased from 12 to 13 per cent. These temporary measures should enable the HNB to withdraw part of the liquid funds used for the financing of the speculative foreign currency demand, which exceeds the actual foreign currency needs for the payment of import and matured foreign loans.
ZAGREB, March 10 (Hina) - Although the kuna exchange rate has been
stabilised in the last couple of days, the Croatian National Bank
(HNB) advisory board has decided that the HNB should send out a
clear signal that it does not intend to give up the protection of the
stability of prices and the national currency, it was said at a
session of the HNB advisory board, held on Wednesday under the
chairmanship of HNB Governor Marko Skreb.
The session decided that as of March 15 the obligatory kuna reserves
of banks and saving banks should be increased by one per cent, while
HNB's interest rate on collateral loans should be increased from 12
to 13 per cent.
These temporary measures should enable the HNB to withdraw part of
the liquid funds used for the financing of the speculative foreign
currency demand, which exceeds the actual foreign currency needs
for the payment of import and matured foreign loans.
Along with interventions into the foreign exchange market, the HNB
advisory board believes these additional measures should give a
clear message that the bank is determined to maintain kuna's
stability and keep changes in the exchange rate within an
acceptable range.
The HNB advisory board expects that the necessary measures of
fiscal and other economic policies would soon be adopted with the
aim of protecting the necessary micro-economic stability.
(hina) rml