For the purpose of maintaining exchange rate stability, i.e. easing depreciation pressures on the kuna against the euro, the CNB Council adopted a decision increasing the calculated foreign exchange component of reserve requirement which is allocated in kuna from 50 to 75 percent.
The Decision was adopted at today's telephone session and it will begin to be applied in the following reserve requirement calculation period, i.e. on 14 January 2009.
It is estimated that an increase in foreign exchange component of reserve requirement which is allocated in kuna will result in an increase of kuna reserve requirement, i.e. in a decrease in foreign exchange component, by approximately HRK 5.8bn.
This amendment is in accordance with the long-term policy of the Croatian National Bank directed at a gradual unification of the currency of reserve requirement allocation and maintenance.
