The Croatian National Bank (CNB) manages financial assets consisting of its euro-denominated own funds and foreign reserves of the Republic of Croatia that have not been transferred to the European Central Bank (ECB). Financial assets are managed by the CNB in accordance with its own rules and the principles of liquidity and safety of investment. In this respect, investment must also comply with restrictions within the Eurosystem in order to prevent an impact on the conduct of the ECB’s monetary policy and with the prohibition of monetary financing. The Eurosystem NCBs manage financial assets with a view to ensuring, among other things, their financial independence and the smooth performance of the tasks that remain within the competence of the respective NCBs.
The CNB, like other Eurosystem NCBs, manages on behalf of the ECB a portion of the foreign reserves which it has transferred to the ECB after accession to the euro area. The foreign reserves of the European Central Bank are used to ensure the credibility of the European System of Central Banks (ESCB) and may be used in foreign exchange market interventions.