Understanding the Euro Adoption: A Comprehensive Guide
After almost 30 years of the Kuna and a decade of being a part of the EU, Croatia officially adopted the Euro as its currency on January 1st, 2023. Money in Croatia is officially Euro. This change is a significant step for the country. And it’s important to understand the effects of this transition on the economy and day-to-day life. In this article, we will delve into the history of our currency. The reasons behind the adoption of the Euro, and what it means for tourists and citizens alike.
A Brief History of Currency in Croatia
Croatia was part of Yugoslavia until 1991, and the Yugoslav Dinar was the currency in use at the time. After gaining independence, the country introduced the Croatian Dinar. The Kuna replaced the previous currency in 1994 after it had been in circulation for three years. The Kuna became the official currency of Croatia, and it has been in use for nearly three decades.
Money in Croatia: The Adoption of the Euro
After joining the EU in 2013, Croatia has been preparing for its eventual adoption of the Euro. The process involved meeting specific criteria, including achieving stability in its economy and meeting the inflation target. From September 2022, the Euro-Kuna conversion rate is fix at €1 = 7.5345 Kunas. Transitioning smoothly, shops started displaying prices in both currencies. From December 1st, 2022, citizens had the opportunity to purchase a small package of Croatian Euros. However, starting from January 1st, 2023, they could only employ these for payments locally and in other Eurozone countries.
The Impact of the Euro as Money on Travelers:
For tourists visiting Croatia, the transition to the Euro should make their lives easier. Especially those who are traveling from countries in the Eurozone. The widespread use of the Euro across much of the EU means that visitors do not need to undertake much preparation. They can obtain their Euros from their preferred foreign exchange office or bank, or withdraw them from ATMs in Croatia. Debit or credit cards can also be used to pay for goods and services.
Will Prices Increase with the Euro Adoption?
When other EU countries switched to the Euro, there were concerns about an increase in prices. Either through substantial increases or through rounding up when prices were converted. It is hard to predict whether this will be the case. But it is something to keep an eye on in the coming months.
Money in Croatia: welcome Euro and Goodbye to the Kuna
The Kuna will no longer be in use from January 1st, 2023. And foreign exchange offices in other countries are unlikely to accept the currency. However, if you have any Kunas lying around, you can exchange them in a Croatian bank. Or keep them as a souvenir.
In conclusion, the adoption of the Euro is a significant step for the country and its economy. While it may take some time to get in the habbit of the new currency, the transition should make life easier for tourists and citizens alike. You will be able to navigate this transition with ease.