Economics

What is the Currency of Croatia?

The official currency of Croatia is the kuna.

What is the Currency of Croatia?

The official currency of Croatia is the kuna.

Croatia is a sovereign state in Europe with its capital in Zagreb, which is also the largest city in the country. The country has a population of about four million people and is governed by a parliamentary system. Until 1991, Croatia was part Federal Republic of Yugoslavia. The World Bank identified the country as a high economy state while IMF classified it as an emerging and developing economy. In this article, we will talk about the Kuna which is the official currency of Croatia.

History of Kuna

The use of kuna can be traced back to the year 1018 although it is not properly documented. At that time it is worth 1/25 Ukrainian hryvnia. However, the Croatian-Hungarian Kingdom led to diminishing of in the autonomy of Croatia and consequently gradual disappearance of the currency from circulation in the 14th Century. The currency reappeared in circulation in 1940 in Banovina which was an autonomous province within the Kingdom of Yugoslavia. The currency gained popularity when the independent State of Croatia was formed by the Ustase Kingdom. However, the currency disappeared again in 1945 when it was replaced by the Yugoslav dinar.

Modern Kuna Currency

After disappearing in 1945, the modern kuna currency was reintroduced in 1994 with an exchange rate of 1 kuna= 1000 dinnars. However, the use of the name kuna was controversial with critics arguing that the same currency had been tried twice in vain. They proposed to use the name “kruna” which was also opposed since the same name was being used by Hungary. This was inappropriate since Croatia was a sovereign state. The use of the Croatian euro might be coming to an end when Croatia, which is a EU member, joins the European monetary system. The kuna will then be replaced by the Euro as a requirement of being a EU member.

The Currency

The Croatian currency consists of coins and notes. The coins are in denominations of 1, 2, 5, and 25 kunas. The coins that were issued in odd years have the name of the plant or animal written in Croatian language while those minted in even years have the name in Latin. Generally, coins with Croatian names are more than those with Latin names. These coins are made of nickel silver and are milled. In the obverse side, they contain; coat of arms, state title, and indication of value. The year of minting is indicated in the reverse side.

The kuna notes on the other hand come in denominations of 5, 10, 20, 50, 100, 200, 500, and 1000. The 5 kuna note is the smallest in size measuring 122× 61 mm while the thousand measures 150×75 mm. All the notes except the 5-kuna note have geometric figures at the lower left on front for recognition by the visually impaired. The notes feature prominent Croatians at the front and architectural motifs at the back.

Exchange Rates of the Kuna

One American dollar will fetch you 6.49 kunas currently while a Euro exchanges at 7.41 kunas. A pound goes for 8.55 kunas and you will need 1.32 Japanese Yen to get a kuna. If converted to the south African Rand, a kuna will yield 2.02 Rands.

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