December 21, 2018 / 2:35 PM / 2 months ago

UPDATE 1-Croatian central bank steps in again to tame kuna

 (Adds details, updates kuna rate)
    ZAGREB, Dec 21 (Reuters) - Croatia's central bank said on
Friday it had bought 130.5 million euros ($148.9 million) from
commercial banks in its second intervention this week to tame
gains in the Croatian kuna.
    It said it had bought the euros at an average rate of 7.4245
kuna. The local currency           eased to 7.4220 to the euro
from around 7.4090 before the intervention.
    Over the past year it has bought 1.82 billion euros in five
interventions to try and keep a lid on the kuna which it holds
in a managed float regime. 
    Croatia runs a current account surplus assessed this year at
around four percent of gross domestic product. That has kept up
the flow of euros, pushing the kuna higher.
    The central bank has said it expects the upward pressure to
continue into next year.             
    Croatia wants to adopt the euro within the next six to seven
years.
    The central bank and the government plan to formalise the
ambition next year and apply to join the ERM-2 (European
Exchange Mechanism), the waiting room for adopting the single
currency. Zagreb hopes to be allowed to join the ERM-2 in 2020.
    
    
 ($1 = 0.8764 euros)

 (Reporting by Igor Ilic; Editing by Andrew Heavens)
  
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