HRK Performs As Expected

September 2004 | Market Strategy

The Croatian National Bank intervened in the forex market on Wednesday, buying EUR25mn in order to rein in the kuna. In line with our expectations (see Maintaining Its Range, 30 July 2004), the unit has remained bid over Q304, but has remained on the weak side of HRK7.3000/EUR. The currency is currently trading around HRK7.37000/EUR amid strong FX inflows: tourism-related inflows rose 15% y-o-y in August following a 7% y-o-y jump in tourist arrivals last month to 473,000. Political noise has also been muted, with the Independent Democratic Serb Party promising to maintain its support for the government, despite concerns

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