Croatia, officially the Republic of Croatia, is a country in the northwestern region of the Balkan Peninsula. It is a beautiful country dotted with many natural wonders and picturesque historic cities and towns. While small, today the country is a tourist hotspot, pulling in people from all over the world to stay and enjoy the beaches and climate.
So, if you’re interested in Croatia, where’s a good place to start learning? Well, what about the local Croatian currency?
If you want to travel to Croatia or if you want to send money to your loved ones based in Croatia, you may have a few questions. Don’t worry, because we’ve got you covered. Learning a little about the currency of Croatia is the ideal place to start. That's why in this blog we’ll be exploring everything you need to know about the currency of Croatia and its history over the years.
Below you’ll learn about:
- The Croatian currency, the Croatian kuna
- How the Croatian kuna is recognised
- The history of the Croatian kuna
- Exchange rates
- How you can send money to Croatia
The Croatian currency, the Croatian kuna
The local currency of Croatia was the croatian kuna until 31st December 2022. The kuna can be subdivided into 100 lipa. Both words come from the historic Croatian language with kuna meaning “marten” (a weasel-like mammal) and lipa referring to the “linden (lime) tree” (a species of tree planted in marketplaces in Croatia under the Habsburg monarchy rule.
The currency was issued by the Croatian National Bank. The notes are printed by the German company Giesecke & Devrient and the coins are minted by the Croatian Mint in a town called Sveta Nedelja. Since it began to be used in 1994, the Croatian kuna has been an important source of stability for the Croatian economy. Croatia is bordered by countries, like Slovenia, that use the Euro. Therefore the Croatian kuna serves as a vital connection between Croatia, the major European currencies and the neighbouring economies.
How the Croatian kunais recognised
The Croatian kuna is recognised by the international currency code “HRK” and by the currency symbol “kn”. From an international perspective, the currency can also be recognised by the ISO number 4217. The Croatian kuna is derived from Slavic languages and, as a result, there is more than one way to create plural forms.
The coins in circulation today include the 5, 10, 20 and 50 lipa, as well as the 1, 2, and 5 kuna. There are 1 and 2 lipa coins but these are rarely used in practice today due to their low value. The banknotes in frequent use include the 10, 20, 50, 100 and 200 kuna. There are also 5, 500, and 1000 kuna notes but their value makes them impractical for many Croatians to use.
The history of the Croatian kuna
The modern kuna was first brought in on May 30, 1994. However, the kuna has its roots in mediaeval times and was the currency unit used in several Slavic states many hundreds of years ago. Then for a long time the kuna disappeared before reappearing in 1939 when an autonomous province with the Kingdom of Yugoslavia wanted to issue its own money.
In 1941 the Independent State of Croatia introduced the Independent State of Croatia kuna that remained in circulation in the region until 1945. This was eventually replaced by the Yugoslav dinar. It wasn’t until 1994 that the kuna appeared again to replace the Croatian dinar.
When it was introduced the kuna was pegged to the German mark. In recent years it has been the policy of the Croatian National Bank to maintain kuna currency fluctuations within a reasonable range dictated by the relative movements of the Euro. Croatia, who joined the EU in 2013, will replace the kuna with the Euro in 2023.
Need to send money to Croatia? If you do, it may help to compare the Croatian kuna to other currencies around the world and the currencies of neighbouring countries like Slovenia, Hungary and Bosnia and Herzegovina. Learning about exchange rates will allow you to understand more about the Croatian economy. You will then be able to work out the best time to send money to your loved ones. So, let’s take a look…
In 2022, the average exchange rate of the Croatian kuna to the Euro (the currency of Croatia’s neighbour, Slovenia) has been hovering around 1 EUR to 7.54 HRK. This is a relatively healthy exchange rate for the Croatian kuna and shows the growth and stability of the Croatian economy in recent years. In comparison the exchange rate of the Croatian kuna to the Bosnian mark has been 1 BAM to 3.8 HRK.
Croatia also has a close financial relationship with Hungary. The Hungarian currency is the Hungarian forint. In 2022, the average exchange rate of the Croatian kuna to the Hungarian forint is around 1 HRK to 54 HUF. Even though the Croatian economy is relatively small, its exchange rate with nations like Hungary is an indication of the kuna’s strength which is promising for the direction of the Croatian economy in the coming years.
These exchange rates give us an example of how the Croatian kuna is being seen and valued around the world. It should provide you with a good understanding of the worth of the Croatian kunain today’s economic market.
While it is a relatively minor currency on the international stage it has been a competitive and important currency for the region. It helps to take note of these exchange rates with the Croatian kuna if you are planning to travel, or if you are planning to send money overseas any time soon.
How can I transfer money to Croatia?
It is quick and simple to send money to Croatia with Small World’s easy and effective money transfer service. Now that you know more about the Croatian kuna it will be easier to know where your money is going and how much it is worth in Croatia.
With Small World you can send money through a variety of services. For example if you want to send money to Croatia you can use our safe and efficient bank deposit service. We have partnerships with a number of banks in Croatia including Zagrebacka banka, HPB, PBZ, Erste Bank and BSD to ensure that you can get your money in the hands of family and friends as quickly and securely as possible. So if you need to support your loved ones in Croatia, choose Small World.Note: As of Sunday, January 1, 2023, the euro will gradually replace the kuna as Croatia's currency: the two currencies will be used together for a period of two weeks. When receiving a payment in kuna, the change will be given in euro.
Your first transfer online is always free of fees!