Croatia Central Bank to Lift Reserve Requirement Rate to 14%
Croatia’s central bank will raise the reserve requirement rate for banks to 14 percent from 13 percent to stabilize the exchange rate of the local currency against the euro.
The change will be effective on Oct. 12, the Zagreb-based bank said today in a statement.
“With this measure, the central bank will withdraw about 3.1 billion kuna ($569 million) from the banking system,” the central bank said. The kuna was trading at 7.47 against the euro at 2:44 p.m. today, after climbing to 7.51 on Sept. 16., the highest since April 13, 2009.
“The system is already quite liquid, so a decrease in liquidity isn’t expected to significantly raise the interest rates on loans and deposits, Zdeslav Santic, the chief analyst at Societe Generale - Splitska Banka d.d., said by phone.
To contact the reporter on this story: Jasmina Kuzmanovic in Zagreb at jkuzmanovic@bloomberg.net
To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net
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