January 11, 2023 - Since the euro was introduced as the official currency in Croatia, there has been a series of price comparisons of products in Croatia and other countries, especially Slovenia. Lidl Croatia explained to Večernji why the prices are different. They point out that the formation of prices in a country is influenced by numerous factors, from the amount of the VAT rate, excise duties, and product analysis costs to logistics costs and the like.

Index compared Lidl prices in Slovenia and Croatia in detail.

"In the case of comparing prices in Slovenian and Croatian Lidl, the VAT rate on food in Slovenia is 9.5 percent, while in Croatia, the rate is 5 percent for some products (bread, fresh meat, and fish, eggs, fruits, and vegetables, edible fats and oils, baby food, pads, and tampons, which make up about 10% of our total assortment), and the rest is 25 percent," they state, as reported on Index.

"Regarding the comparative account from both Lidls, which was published in several Croatian media, 8 out of 10 products from the said account from the Slovenian Lidl have a tax rate of 9.5 percent, and in Croatia, 25 percent. This is a difference of 15.5 percentage points. Furthermore, Croatia pays a return fee on PET packaging of 0.07 euros, which is reflected on products such as mineral water and juices," states Lidl.

Fuel price

They further note that gasoline and diesel are cheaper in Slovenia, which makes a difference in the logistics costs for the delivery of goods. At the same time, they note that Croatia is geographically significantly larger than Slovenia. "It is demanding in terms of transportation due to the specific geographical shape, and the logistics also include islands, which is an additional challenge," they state in the press release.

"Some of the factors that led to global disturbances are the prices of raw materials, the availability of goods, the rise in logistics prices, the rise in electricity and gas prices and general costs such as maintenance, the impact of the war in Ukraine and, consequently, high inflation. The retail prices of certain products rose in line with the growth of purchase prices and other factors that influenced movements in global markets, " they state.

"We would like to emphasize here that we did not blindly transfer the increase in the input prices of our suppliers to our customers but corrected the prices with extreme care and concern, precisely so that we would not allow our customers to feel the full weight of the inflationary pressure that appeared," it is further stated in Lidl Croatia's explanation.

They also claim that Lidl Croatia did not increase prices during the switch to the euro.

"Prices of products from Lidl's regular range have been converted from kuna to euros according to the rules of mathematical rounding (without unjustified price increases) in favor of the customer. Also, to confirm a transparent relationship with customers, Lidl has joined the Code of Ethics, which determines how business entities act for a reliable and transparent introduction of the euro to create trust and a safe environment for consumers. Within the scope of the inspections so far, no unjustified price increases have been found in Lidl Croatia," they said.

For more, make sure to check out our dedicated Lifestyle section.

ZAGREB, March 31, 2020 - The Croatian National Bank (HNB) once again intervened on the foreign exchange market on Tuesday with the aim of maintaining exchange rate stability by selling banks just over €618 million, whereby HRK 4.7 billion was withdrawn from the system.

The HNB sold €618.5 million at the middle exchange rate of HRK 7.608529.

This is the fifth intervention and so far, the largest by the central bank in an effort to maintain exchange rate stability and ease the pressure of the depreciation of the domestic currency, the kuna.

HNB first intervened on the exchange market on March 9 followed by further interventions during the month, selling a total amount of €1.63 billion to commercial banks. With today's intervention that amount has been increased to almost €2.25 billion.

Today, on the last day of March, the €/HRK middle exchange rate was 7.609231, which is just over 2% more than it was at the start of March when it was 7.456909.

More news about banks can be found in the Business section.

ZAGREB, August 16, 2019 - In the first half of 2019, a total of 555 counterfeit banknotes were detected in circulation in Croatia, the Croatian National Bank (HNB) has reported, underscoring that it "is a decrease of 62.7% from total registered banknote counterfeits of all currencies in the same period in 2018".

Of those 555 forged banknotes, 278 counterfeits were kuna banknotes, which is an increase of 5.7% relative to 263 registered counterfeit kuna banknotes withdrawn from circulation in the same period in 2018.

"Given an average of 254.3 million kuna banknotes in circulation in the first half of 2019, an average of 1.1 counterfeit kuna banknotes were detected per 1 million genuine banknotes in circulation in the said period."

"The most frequently counterfeited domestic currency denomination was a 200 kuna banknote, with 124 counterfeits registered (44.6% of total kuna counterfeits), followed by 1000 and 500 kuna banknotes, which together accounted for 38.1% of total registered kuna banknote counterfeits," the bank has reported.

Of 277 counterfeited foreign currency banknotes, fake euro banknotes accounted for 224 of them.

"A total of 224 counterfeit euro banknotes were registered from January to June 2019, which is a decrease of 81.4% relative to 1,203 registered counterfeit euro banknotes withdrawn from circulation in the same period in 2018., the HNB says.

"With 112 banknotes withdrawn from circulation, 50-euro banknotes accounted for the largest share (50.0%) in the total number of registered counterfeit euro banknotes."

The amount of the counterfeit money in the said period did not cause any major disturbances in the money flows.

More news about the Croatian National Bank can be found in the Business section.

ZAGREB, June 2, 2019 - The Croatian National Bank (HNB) marked the 25th anniversary of the kuna as the national currency with a 25 kuna coin released in 30,000 copies.

The kuna became the official currency on 30 May 1994, then Statehood Day, replacing the Croatian dinar, which itself had replaced the Yugoslav dinar as a transitional currency after Croatia gained independence from the former Yugoslavia.

The Archaeological Museum in Zagreb is also marking the kuna's 25th birthday with an exhibition which opened on May 30.

The HNB has issued the special 25 HRK coin on 14 occasions so far to commemorate events of special importance for Croatia.

The first one was issued on 28 May 1997 to mark the completion of the peaceful reintegration of Croatian territories under the UN Transitional Administration in Eastern Slavonia, Baranja and Western Sirmium and the restoration of Croatia's territorial integrity.

The 25 kuna coins were also issued to mark the tenth anniversary of Croatia's international recognition, the 25th anniversary of independence, the 25th anniversary of admission to the UN, the granting of EU membership candidate status, the signing of the EU accession treaty, the introduction of the euro in 11 member states in 2000, Croatia's first participation in EXPO, in Lisbon in 1998, a European Bank for Reconstruction and Development assembly held in Zagreb, and the first Croatian Esperantists' congress.

The HNB Council decided to issue the latest 25 coin kuna on May 7. The coin was designed by sculptor Damir Mataušić.

More news about the Croatian National Bank can be found in the Business section.

ZAGREB, May 31, 2019 - An exhibition marking the 25th anniversary of the introduction of the Croatian currency, the kuna, was opened at Zagreb's Archaeological Museum on Thursday.

The exhibition on the kuna, which was introduced on 30 May 1994, was staged by the Archaeological Museum in cooperation with the Croatian National Bank (HNB).

The author of the exhibition is Tomislav Bilić and it will be open until June 30.

On display are all versions of official and commemorative Croatian coins and banknotes issued over the past 25 years.

On the occasion of the 25th anniversary of the kuna, the HNB and the Croatian Monetary Institute issued a commemorative, 25 kuna coin.

The exhibition was opened by Prime Minister Andrej Plenković, who said that the introduction of the kuna and the marking of its 25th anniversary were important events in the history of modern-day Croatia.

He described the kuna as an important symbol of the Croatian state, noting that its introduction had enabled economic stability.

Plenković said that along with introducing and using the national currency, Croatia had been aspiring to the European monetary integration since 1991.

"The government and the HNB have shaped the strategy for the introduction of the euro. We want to introduce it gradually... after we create the necessary conditions," he said, describing euro introduction as "the final element of the European integration".

HNB governor Boris Vujčić recalled that Croatia's monetary independence was, among other things, a response to the policy of the National Bank of Yugoslavia, where, he said, outvoting was used to make decisions that served to cover the deficit and finance the subsequent Great Serbian aggression.

Also, monetary independence was an instrument to stop the high inflation and it was successful, said Vujčić, announcing the continuation of the HNB's policy of maintaining the stability of the kuna until the introduction of the euro.

More news about the Croatian National Bank can be found in the Business section.

ZAGREB, May 10, 2018 - The Croatian National Bank (HNB) intervened on the foreign exchange market on Thursday by purchasing 320.5 million euro from commercial banks to prevent appreciation pressure on the domestic currency, the kuna.

ZAGREB, February 12, 2018 - Croatia's gross international reserves stood at 15.7 billion euro at the end of 2017, which was 16.2% or 2.2 billion more compared to the end of 2016, figures released by the Croatian National Bank (HNB) show.

ZAGREB, January 31 - Croatian National Bank (HNB) Governor Boris Vujčić said on Tuesday that the national currency, the kuna, was currently under heavy appreciation pressure and that the central bank would have to continue buying euros from commercial banks to prevent its further strengthening.

One influential Croatian businessman believes that Croatian currency is overvalued.