History of the Croatian Currency
Croatian Dinar — Transitional Means of Payment
The Croatian dinar was released into circulation on 23 December 1991, on the day of coming into force of the Decree on the National Bank of Croatia, issued by the Government of the Republic of Croatia, pursuant to which the National Bank of Croatia became a fully independent institution, directly accountable to the Croatian Parliament, whose main goal was to preserve the value of the domestic currency. The Yugoslav dinar was exchanged for the Croatian dinar at the ratio of 1:1 from 23 to 31 December (the regular time limit). The exchange rate of the Croatian dinar versus foreign currencies was determined by the National Bank of Croatia on its first exchange rate list of 1 January 1992 – 1 German mark equalled 55 Croatian dinars.
The introduction of the Croatian dinar as the legal tender in the Republic of Croatia marked the end of the country's process of gaining monetary independence. This process was started in July 1991, when the Government of the Republic of Croatia, by its decisions, attempted to offset the negative effects for Croatia from the decision of the Board of Governors of the National Bank of Yugoslavia of 27 June 1991, which excluded the banks from the Republic of Croatia and the Republic of Slovenia, and their central banks, from the primary issue of the NBY. Although these two republics were thus de facto separated from the Yugoslav monetary system, the moratorium imposed by the Brijuni Declaration (from 7 July to 7 October) was an attempt, although unsuccessful, aided by the international community, to arrest the process of gaining monetary independence.
The Croatian dinar was an interim currency issued by the Ministry of Finance, with banknotes signed by the then finance minister. This currency was not issued by the National Bank, as it was meant to serve as a transitional means of payment in the process of gaining monetary independence and building healthy foundations, primarily in terms of achieving price stability, for the introduction of the national currency. The banknotes were issued in denominations of 1, 5, 10, 25, 100, 500, 1000, 2000, 5000, 10000, 50000 and 100000 dinar, while coins were not minted.
The CNB was replacing HRD banknotes within a regular time limit from 30 May to 31 December 1994, and within an extended time limit until 30 June 1995. As of 1 July 1995, HRD banknotes could no longer be replaced.
Croatian Dinar — Transitional Means of Payment
The Croatian dinar was released into circulation on 23 December 1991, on the day of coming into force of the Decree on the National Bank of Croatia, issued by the Government of the Republic of Croatia, pursuant to which the National Bank of Croatia became a fully independent institution, directly accountable to the Croatian Parliament, whose main goal was to preserve the value of the domestic currency. The Yugoslav dinar was exchanged for the Croatian dinar at the ratio of 1:1 from 23 to 31 December (the regular time limit). The exchange rate of the Croatian dinar versus foreign currencies was determined by the National Bank of Croatia on its first exchange rate list of 1 January 1992 – 1 German mark equalled 55 Croatian dinars.
The introduction of the Croatian dinar as the legal tender in the Republic of Croatia marked the end of the country's process of gaining monetary independence. This process was started in July 1991, when the Government of the Republic of Croatia, by its decisions, attempted to offset the negative effects for Croatia from the decision of the Board of Governors of the National Bank of Yugoslavia of 27 June 1991, which excluded the banks from the Republic of Croatia and the Republic of Slovenia, and their central banks, from the primary issue of the NBY. Although these two republics were thus de facto separated from the Yugoslav monetary system, the moratorium imposed by the Brijuni Declaration (from 7 July to 7 October) was an attempt, although unsuccessful, aided by the international community, to arrest the process of gaining monetary independence.
The Croatian dinar was an interim currency issued by the Ministry of Finance, with banknotes signed by the then finance minister. This currency was not issued by the National Bank, as it was meant to serve as a transitional means of payment in the process of gaining monetary independence and building healthy foundations, primarily in terms of achieving price stability, for the introduction of the national currency. The banknotes were issued in denominations of 1, 5, 10, 25, 100, 500, 1000, 2000, 5000, 10000, 50000 and 100000 dinar, while coins were not minted.
The CNB was replacing HRD banknotes within a regular time limit from 30 May to 31 December 1994, and within an extended time limit until 30 June 1995. As of 1 July 1995, HRD banknotes could no longer be replaced.
Featured in the centre of the banknotes was a portrait of a Croatian scientist, Ruđer Bošković. Higher denominations featured the motif of the History of the Croats, a sculpture by Ivan Meštrović, while smaller denominations bore an image of the Zagreb Cathedral. | |||||||||||||||||||
| kuna and lipa — the Croatian Currency | |||||||||||||||||||
| On the Statehood Day, 30 May 1994, the kuna, divided into 100 lipa, was introduced as the monetary unit of the Republic of Croatia, by the exchange for the Croatian dinar in the ratio of 1:1000. The issuance of the kuna was made possible by the stability achieved by the successful implementation of a stabilisation programme, introduced in October 1993. The programme was based on the coordinated measures of monetary and fiscal policies, foreign exchange liberalisation and some structural reforms. In the situation of a strong depreciation of the Croatian dinar exchange rate, the stabilisation programme set the upper limit for the DEM/HRD exchange rate at 4,444. The exchange rate of the Croatian dinar never again approached this limit and started to strengthen instead. Inflationary expectations were in a short while anchored by the stabilisation programme, with the result that hyperinflation exceeding 1000 percent annually in 1993 was followed by price stability established in 1994, with a 3 percent deflation at the December level.The name kuna (marten) was chosen for the Croatian currency because of the important role of marten pelts in the monetary and fiscal history of Croatia. Marten pelts had originally been used for payments in kind. Later, the kuna became a unit of account and, finally, a modern-day currency. Additionally, marten pelts were used to pay a special medieval tax, called kunovina or marturina, in Slavonia, the Croatian Littoral and Dalmatia; a marten was depicted on the Croatian coin banovac from the first half of the 13th to the end of the 14th century; issuing the kuna was considered, but never realised, in the Banovina of Croatia; the kuna was used in the issues of the Independent State of Croatia and of the Antifascists Council for the National Liberation of Croatia. Features of Kuna Banknotes Last update 18 April 2011
The first versions of the kuna banknotes were issued in denominations of 5, 10, 20, 50, 100, 200, 500 and 1000, and bear the issue date of October 31, 1993. In the period from 1995 to 2004 the following versions of kuna banknotes were issued:
All kuna banknotes are printed on both sides with simultaneous lithography, and on the obverse with intaglio printing that has an iridescent effect. Two colors on the obverse and reverse of all the denominations of the notes fluoresce under ultra-violet light. All kuna banknotes have in the central part of the obverse a square printed with the crest of the Republic of Croatia. Alongside its right edge is printed in intaglio micro printing in sixteen lines, the words of the national anthem of the Republic of Croatia, Lijepa nasa (Our beautiful country) by Antun Mihanovic. A square in the negative is printed on every banknote. Inside this square a smaller square is printed in outline; along each side of it the nominal value of the banknote in digits and the name of the unit of currency is printed. Inside the smaller square triangular elements are printed that, when the banknote is looked at towards the light, are so complemented by corresponding elements on the reverse of the note as to form the letter H. In the place occupied by this square, the paper of the banknote is thinner, which makes it more transparent. To the right of the portraits on the banknotes is printed a rectangle, placed along the multicolored edge of the banknote. In a special way, by changing the direction of the lines, within the rectangle the concealed legend KUNA is printed in intaglio printing. This can be seen only from a certain angle. For the concealed legend to be visible, it is necessary to hold the note flat and at eye level towards the light. If the note is moved slightly, the concealed legend will become visible. The serial number is printed twice on the note, in the upper left-hand corner and in the lower right hand corner of the obverse of the note. The serial number is printed in black ink, and contains letters designating the series before and after the seven digits. The designation of the numbering fluoresces green under ultra-violet light. In the lower left hand corner of the white surface of the note a mark for the blind is printed in intaglio printing (except in the case of 5 kuna notes), within which a certain text is printed in microtext. On the reverse of the note, in the upper right hand corner, two lines of text are printed: the date of the banknote and a facsimile signature of the Governor.http://www.hnb.hr/novcan/enovcan.htm | |||||||||||||||||||
