site.btaCroatian Central Bank Official Says Euro Adoption Marked Turning Point in Croatia’s Financial History

The adoption of the euro was one of the most significant processes in Croatia’s modern financial history, transforming the operations of the central bank and strengthening the resilience of the banking sector, Croatian National Bank Vice Governor Michael Faulend said in a BTA interview.

Faulend stressed that the change had been “enormous”, as the country had moved from a regime of maintaining a stable exchange rate to the monetary policy of the European Central Bank, which focuses on inflation control. “The way we think and analyze has completely changed — we now look at the euro area as a whole,” he stressed.

According to Faulend, the success of Croatia’s smooth transition to the euro was the result of long and careful preparation, “highly appreciated both by the European Commission and by citizens”. Among the main benefits, he highlighted the elimination of currency risk for banks, which had contributed to greater stability in the financial system.

Faulend noted that Croatian citizens still hold around 4 billion kuna – some 10–12% of the total money in circulation before 2023. Croatian banknotes can be exchanged indefinitely at the central bank, while the deadline for exchanging coins expires at end-2025.

In a separate statement to Bulgarian journalists visiting Zagreb to learn about the country’s experience on its path to the euro area, the Vice Governor voiced confidence that Bulgaria would successfully complete the process of adopting the euro on January 1, 2026. He said that Croatia and Bulgaria had started this journey almost simultaneously and added that he was pleased to see Bulgaria’s good progress, expressing his belief that Bulgarians would share Croatia’s positive experience.