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In the official announcement by Croatian lawmakers on Friday, Euro is set to replace Kuna as the official currency of Croatia from 2023. The decision was already announced back in the summer of 2022. However, various individuals opposed the decision as it would weaker the economy of the nation. The decision to replace Kuna with Euro was passed with 117-13 votes in the legislative assembly. The expected change rate between the currency is said to be 7.53450 Croatian Kuna for one Euro. In the coming months, both currencies will be used parallel before the official rollout of the Euro.
Croatia Government Will Have to Climb The Rock of Kuna Coins
Amidst the entire judgment, the Croatian government will have a giant task in the upcoming months to withdraw Kuna coins from the economy. Since the introduction of Kuna coins back in 1994, there have been approximately 2.4 billion Kuna coins circulating in the market. Since Euro will be the accepted currency after some period, the Croatian government will have to roll back Kuna coins which be replaced by Euro coins.
Why is Kuna Being Replaced With Euro in Croatia?
You must be thinking about the triggers that led to the massive currency replacement in Croatia. In a nutshell, Croatia was included in the block of the European Union back in 2013. Even after years, the nation remains one of the weakest economies in the block because of the after-effects of the war that took place between 1992-95. Since Croatia attracts tourism, major exchange in the nation is done in Euros. Every year, the country witnesses inflation in European and other global tourists. With the adoption of Euros, the tourism industry and the overall economy of Croatia are expected to thrive in the coming years.
Croatia Will Apply Dual Pricing Method For Some Period
To avoid price hikes and injustice, Croatia will introduce the concept of dual pricing. The method will protect the consumers after the Kuna is replaced with Euro. All the businesses operating in Croatia will follow a dual pricing model. Even all the cash registers will be switched to a dual pricing model. The dual pricing system will be implemented at least five months before the introduction of the Euro as the official currency and will approximately last 10 or 11 months after the introduction.