Croatian kuna

The kuna is the currency of Croatia, in use since 1994 (sign: kn; code: HRK). It is subdivided into 100 lipa. The kuna is issued by the Croatian National Bank and the coins are minted by the Croatian Mint. The plural form of the word kuna in Croatian can be ''kuna'' or ''kune'' (e.g. ''2 kune'', ''10 kuna'') because of different number declension rules. 2022 will be the final year for the kuna as Croatia will replace it with the euro (€, EUR) on 1 January 2023. All Croatian bank accounts and credit cards will automatically be converted to euros and kuna cash may be exchanged for euros at no charge.

The word ''kuna'' means "marten" in Croatian, referring to the historical use of marten pelts as units of value in medieval trading. The word ''lipa'' means " linden (lime) tree", a species that was traditionally planted around marketplaces in Croatia and other lands under Habsburg monarchy rule during the early modern period.

History and etymology

During Roman times, in the provinces of upper and lower Pannonia (today Hungary and Slavonia), taxes were collected in the then highly valued marten skins. Hence the Croatian word '' marturina'' ("tax"), which derived from the Medieval Latin word for "marten" ''martus'', which came from Proto-Germanic ''*marþuz'' through Old Dutch and Old French (modern Croatian for "marten": ''kuna''). The kuna was a currency unit in several Slavic states, most notably Kievan Rus and its successors until the early 15th century. It was equal to (later ) gryvna of silver. The plural form of ''kuna'' in Croatian is ''kune''.

It has no relation to the various Slavic currencies named "koruna" (translated as ''kruna'' in Croatian) which means "crown".

In the Middle Ages, many foreign monies were used in Croatia, but since at least 1018 a local currency was in use. From the beginning of the 12th century up to the middle of 13th century, Slavonia used an Austrian currency known as frizatik. Between 1260 and 1380, Croatian Viceroys issued a marten-adorned silver coin called the banovac. However, the diminishing autonomy of Croatia within the Croatian-Hungarian Kingdom led to the gradual disappearance of that currency in the 14th century.

The idea of a kuna currency reappeared in 1939 when Banovina of Croatia, an autonomous province established within Kingdom of Yugoslavia, planned to issue its own money, along with the Yugoslav dinar. In 1941, when the Ustaše regime formed the Independent State of Croatia, they introduced the Independent State of Croatia kuna. This currency remained in circulation until 1945, when it – along with competing issues by the communist Partisans – disappeared with the establishment of FPR Yugoslavia and was replaced by the Yugoslav dinar.

Modern currency

The modern kuna was introduced on May 30, 1994, starting a period of transition from the Croatian dinar, introduced in 1991, which ended on December 31, 1994.Croatian Government and Croatian National Bank decisions published in Narodne novine 37/9

http://narodne-novine.nn.hr/clanci/sluzbeni/1994_05_37_683.htm

http://narodne-novine.nn.hr/clanci/sluzbeni/1994_05_37_685.html] One kuna was equivalent to 1,000 dinars at a fixed exchange rate. The kuna was pegged to the German mark from the start. With the replacement of the mark by the euro, the kuna's peg effectively switched to the euro.

The choice of the name ''kuna'' was controversial because the same currency name had been used by the Independent State of Croatia kuna, but this was dismissed as a red herring, since the same name was also in use during the Banovina of Croatia and by the State Anti-Fascist Council for the National Liberation of Croatia (ZAVNOH). An alternative proposal for the name of the new currency was ''kruna'' (crown), divided into 100 ''banica'' (viceroy's wife), but this was deemed too similar to the Austro-Hungarian krone and found inappropriate for the country which is a republic, even though the Czech Republic and, until 2008, Slovakia have used currencies called "crown".

The self-proclaimed Serbian entity Republic of Serbian Krajina did not use the kuna or the Croatian dinar. Instead, they issued their own Krajina dinar until the region was reintegrated into Croatia in 1995. Between 1996 and 1998 United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium facilitated gradual introduction of the currency into Eastern Slavonia, Baranja and Western Syrmia where it was used in parallel with other currencies.

A long-time policy of the Croatian National Bank has been to keep the fluctuations of the kuna's exchange rate against the euro (or, previously, the mark) within a relatively stable range. Since the introduction of the euro in 1999, the exchange rate between the two currencies rarely fluctuated to a substantial degree, remaining at a near constant 7.5:1 (HRK to EUR) rate. Croatia joined the European Union on 1 July 2013 and the Exchange Rate Mechanism on 10 July 2020 at a rate of 7.53450 HRK to €1. The kuna is expected to be replaced by the euro on 1 January 2023 after satisfying prerequisites, as the initial time estimate of standard four years after joining the European Union proved too short.

Coins

In 1994, coins were introduced in denominations of 1, 2, 5, 10, 20 and 50 lipa (Croatian word for linden or tilia tree), 1, 2, 5 and 25 kuna. The coins are issued in two versions: one with the name of the plant or animal in Croatian (issued in odd years), the other with the name in Latin (issued in even years). Overall more coins have been minted with Croatian names than with names in Latin.

Due to their low value, 1 and 2 lipa coins are rarely used. Since 2009, these coins are no longer minted, but the Croatian National Bank has stated that it had no plans for withdrawing them, and the 1 and 2 lipa coins are still minted as non-circulating, mainly for numismatic collections.

Commemorative coins

Commemorative coins of the Croatian kuna have been issued since 1995.

Banknotes

The notes were designed by Miroslav Šutej and Vilko Žiljak, and all feature prominent Croatians on front and architectural motifs on back. The geometric figures at lower left on front (except the 5-kuna note) are intaglio printed for recognition by the blind people. To the right of the coat of arms on front is a microprinted version of the Croatian national anthem, Lijepa naša domovino (''Our Beautiful Homeland''). The overall design is reminiscent of Deutsche Mark banknotes of the fourth series.

The first series of notes was dated 31 October 1993. The 5, 10 and 20 kuna notes from this series were withdrawn on 1 April 2007, and the 50, 100 and 200 kuna notes were withdrawn on 1 January 2010, but remain exchangeable at the HNB in Zagreb.

New series of notes with slightly tweaked, but similar designs and improved security features were released in 2001, 2004, 2012 and 2014.

Exchange rates

See also

* Independent State of Croatia kuna
* Economy of Croatia
* Croatia and the euro

References

Bibliography

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Further reading

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External links

Croatian National Bank – English pages

{{Authority control

Coins of Croatia
Currencies introduced in 1994
Kuna
Currencies of Europe
Fixed exchange rate