Croatia expects that its adoption of the euro will provide some elements of safety to the Balkan state in an unpredictable world at a time when inflation is increasing in Europe and ratcheting up the non-concept geopolitical winds.
Croatia will deposit its KUNA on January 1 to join the euro region as its twentieth member.
While it was just 10% in the euro region in September, Croatia, which only recently joined the EU, posted an annual average of almost 13%.
The advantages of the euro’s dependency on the nation with a population of 3. 9 million were frequently discussed by the authorities in the years leading up to the unification of the euro.
According to Anna Sabic of the Croatian National Bank, “the euro gives flexibility.”
Since July, the European Central Bank has implemented a stringent monetary policy in an effort to slow down the inflation that has escalated due to the high cost of food and energy brought on by Russia’s war in Ukraine.
Analysts believe that Eastern European nations in the European Union with currencies other than the euro, such Poland and Hungary, have a higher likelihood of experiencing high inflation.
Croatia is getting ready to switch to the euro amid high inflation.
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