CNB increases the kuna component of banks' reserve requirement

Published: 3/11/2003

In order to achieve the monetary policy goals for 2003, the Council of the Croatian National Bank, at its today's meeting adopted a decision on increasing the foreign exchange component of reserve requirement allocated in kuna from 35% to 42%.

This decision will be implemented gradually, i.e. an increase by five percentage points (from 35% to 40%) will be applied in the calculation of the reserve requirement on 10 November, 2003 and by the remaining two percentage points (from 40% to 42%) on 8 December, 2003. The remuneration rate paid by the Croatian National Bank on allocated kuna reserve requirement will be reduced from 1.50% to 1.25%.