By today's decision of the Croatian National Bank's Governor, the maximum permitted open foreign exchange position for banks was increased from 20 per cent to 30 per cent of own funds.
This move made it easier for banks to dispose of the foreign exchange funds freed up by reducing the rate of the minimum required foreign currency claims for banks from 25 to 20 per cent. As already announced, this amount of approximately EUR 1.25 billion was so far supposed to be maintained by the banks in some form of liquid foreign exchange reserves.
These decisions taken by the central bank should contribute to maintaining stability of the kuna exchange rate and relieving depreciation pressures on the foreign exchange market.
