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Croatian Central Bank Regulates Lipa Coins in Circulation

The Croatian National Bank (CNB) has announced that it will be strictly regulating the reproduction, circulation, and replacement of Kuna banknotes and Lipa coins. According to a recent article in the country’s financial law, Article 25 states that the CNB must:

  • Make issue plans for banknotes and coins
  • Administer currency reserve inventory
  • Ensure a regular supply of these currencies in circulation

Process for Replacing Worn-out or Damaged Banknotes and Coins

The article also outlines the process for replacing worn-ouy or damaged banknotes and coins, with the CNB having the authority to regulate all other matters related to:

  • Issuance
  • Printing
  • Minting
  • Handling
  • Processing
  • Replacement of these currencies

Lipa Coins Under Scrutiny

In a move aimed at maintaining financial stability and preventing counterfeiting, the CNB will be closely monitoring Lipa coins in circulation. The bank has emphasized that only authorized reproductions of Kuna banknotes and Lipa coins can circulate within the country’s borders.

Replacement of Banknotes and Coins

According to Article 26, worn-out banknotes will be replaced in full value, while damaged banknotes and coins will be replaced under specific terms set by the CNB.

International Cooperation

The Croatian National Bank has also emphasized its commitment to international cooperation in supervising credit institutions. The bank has agreed to share information and best practices with other central banks and financial regulators to ensure a stable and secure financial environment.

Relationships with Government Bodies

The CNB will continue to maintain close relationships with government bodies, including the Ministry of Finance. As outlined in Article 36, the bank will:

  • Keep accounts for the Republic of Croatia
  • Execute payment transactions on behalf of the government

Additionally, the CNB has been authorized to act as fiscal agent for the Republic of Croatia, responsible for tasks such as:

  • Issuing debt securities
  • Making payments related to these securities

Consultations and Reporting

The Ministry of Finance is required to consult with the CNB at least once every six months on its plans for domestic and foreign borrowing. The ministry must also report on all borrowing transactions in detail, as agreed upon by both parties.

Conclusion

In conclusion, the Croatian National Bank’s regulations on Lipa coins in circulation aim to ensure the country’s financial stability, prevent counterfeiting, and maintain good relationships with government bodies.