Circular Letter No. CC/2022/00000035: Conditions for Exchanging Croatian Kuna for Euro Banknotes and Coins

Circular Letter No. CC/2022/00000035 Sent to: Credit Institutions, Financial Companies, Payment Institutions and Electronic Money Institutions. Mod. 40000375/T – 01/14 Subject: Application of ECB Guideline (ECB/2006/10) 'on the exchange of banknotes after the irrevocable fixation of the exchange rates related to the introduction of the euro' in the context of the introduction of the euro in Croatia on 1 January 2023

Pursuant to Decision (EU) 2022/1211 of 12 July 2022, the Council of the European Union considers that Croatia meets the necessary conditions for the adoption of the euro and that the derogation granted to it, referred to in Article 5 of the 2012 Act of Accession, must be revoked with effect from 1 January 2023.

Council Regulation (EU) 2022/1208 of 12 July 2022, amending Regulation (EC) No 2866/98 as regards the euro conversion rate for Croatia, fixed the conversion rate between the euro and the Croatian kuna at 7.53450 kunas per 1 euro.

ECB Guideline ECB/2006/10 of 24 July on the exchange of banknotes after the irrevocable fixation of the exchange rates: • Assigns to the national central banks of the Eurosystem the obligation to ensure that, in at least one location in their national territory, banknotes of a new participating Member State can be exchanged, at face value, for euro banknotes and coins; • Determines that exchange operations shall commence from the date of adoption of the euro in the new participating Member State and shall, in principle, run for a period of two months, corresponding to that defined for the dual circulation of the euro and the national currency in the new participating Member State; • Allows the national central banks of the Eurosystem to restrict the quantity and/or total value of banknotes of the new Member States that they are willing to accept, to a certain maximum amount, defined per operation or per day.

The Bank of Portugal, pursuant to the aforementioned ECB Guideline ECB/2006/10, communicates the following conditions for the exchange of Croatian kuna banknotes for euro banknotes and coins:

1. The exchange of banknotes denominated in Croatian kunas will be carried out, without additional charges for the presenter, by euro banknotes and coins, at the conversion rate of 1 euro = 7.53450 kunas;
2. Direct exchange operations for individuals will be carried out at the treasuries of the Bank of Portugal in Lisbon, Porto, Faro, Funchal and Ponta Delgada, during business hours between 8:30 and 15:00;
3. The period for the exchange of banknotes denominated in Croatian kunas will run from 1 January to 28 February 2023;
4. The maximum amount to be exchanged per person and per day, at the Bank of Portugal counters, will be limited to 8,000 Croatian kunas, in a single transaction or in several.

Mod. 40000375/T – 01/14 The Bank of Portugal may also carry out exchange operations of banknotes denominated in Croatian kunas, requested by credit institutions, by means of deposits, provided that the quantity and value of the banknotes to be exchanged justify it. For this purpose, contact should be established with: Emission and Treasury Department Central Unit for Cash Operations Carregado Complex Estrada Banco de Portugal nº 1, Trombeta 2580-364 Alenquer

Any further clarification may be requested at the electronic address tesouraria.central@bportugal.pt or by telephone 263 856 542.