Croatia is not yet a member of the euro area. The kuna has been, however, part of the exchange rate mechanism (ERM II) since 10 July 2020.
On 1 June 2022, the Commission assessed in its 2022 Convergence Report that Croatia fulfils all the criteria for joining the euro area and proposed to the Council that Croatia adopt the euro on 1 January 2023.
Adoption of the euro
Croatia has participated in the ERM II since 10 July 2020. It must participate in the mechanism without severe tensions and without devaluing its central rate against the euro for at least two years before it can qualify to adopt the euro. Being part of the Exchange Rate Mechanism is intended to help non euro-area countries prepare themselves for becoming part of the euro area. It is an important milestone towards adopting the euro.
Central exchange rate
The Croatian kuna joined ERM II on 10 July 2020 and observes a central rate of 7.53450 to the euro with a standard fluctuation band of ±15%.