CENTRAL BANK DISCUSSES ECONOMIC AND FINANCIAL MOVEMENTS

( Editorial: --> 4439 ) ZAGREB, Sept 30 (Hina) - The Croatian National Bank (HNB) Advisory Board on Wednesday discussed the exchange rate movements over the past several weeks and concluded that there is no need for changing the monetary policy. The kuna exchange rate in the last several weeks registered a somewhat earlier and speedier depreciation rate compared to the previous season movements but the exchange rate changes are still not such as to call for changes in the monetary policy, the HNB Advisory Board believes. More so since foreign currency reserves are high enough to prevent bigger exchange rate leaps, the HNB says in a statement. However, if it establishes that changes in the exchange rate are of such intensity which cannot be justified by real economic movements, the central bank will take appropriate measures. One should have in mind that, according to all recent indicators, the deficit in the balance on current account in this year will be reduced from 7 to 8 per cent (which is a significant improvement compared to last year's 12.6 per cent), along with an improved import-export ratio. Furthermore, this year has so far seen a balanced ratio of budgetary revenue and expenditure as well as the continued economic growth. The Advisory Board today also gave an approval for the Croatian Mint to make gold medals bearing the inscriptions "The Visit of the Holy Father Pope John Paul II to Split" and "Pope John Paul II in Marija Bistrica and the Beatification of Cardinal Alojzije Stepinac". Each of those medals will be made in two versions (a small and a larger one), in not more than 3,000 copies. (hina) jn rml, 302359 MET sep 98