By Betty Henderson • 19 January 2023 • 16:43
Croatia’s kuna currency is being phased out in favour of the euro.
CROATIANS are disillusioned after the introduction of the euro has sparked price hikes in the central European country. Croatia became the 20th country to adopt the continent’s signature currency on Sunday, January 1.
As Croatia phases out its kuna currency which had been used in the country since 1994, the public are grappling with unexpected price hikes. The price increases are thought to be from traders rounding up former prices after conversions.
Despite warnings from the government on Thursday, January 5 that they would sanction businesses taking advantage of the situation with tax increases, cancelling energy subsidies and fining offender, the practice has continued.
In their defence, many merchants said they already displayed prices in euros before the change at the start of the year, saying that it’s consumers who are confused about the change, and that any price increases are necessary due to inflation.
The kuna was pegged to the euro in 2022 and the country has been obliged to join the system since joining the European Union back in 2013. Experts hope teething issues will soon be resolved and the new system will be more efficient.
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