Reserve requirement rate up from 13% to 14%

Published: 20/9/2011

The Croatian National Bank Council today adopted a decision to increase the bank reserve requirement rate from 13 percent to 14 percent. The decision will become effective on 12 October and will apply to the reserve requirement calculation for September.

Through this measure the central bank intends to withdraw from the banking system about 3.1 billion kuna (2.6 billion from the kuna component and 0.5 billion from the foreign exchange component of the reserve requirement).The purpose of withdrawing excess liquidity from the system is to stabilise the kuna vs. euro exchange rate, i.e. to ease depreciation pressures.

The central bank will continue its close monitoring of events in the money and foreign exchange markets and will, as necessary, take measures to prevent excessive exchange rate fluctuations not based on real economic movements.