500 Kuna (University of Zagreb) – Croatia

In 2020, Croatia's currency situation was defined by its longstanding pursuit of adopting the euro, operating within the framework of the European Exchange Rate Mechanism II (ERM II). The national currency, the kuna (HRK), had been pegged to the euro since its introduction in 1994, first via the German Mark and then directly, ensuring remarkable stability for decades. This stability was a key strategic priority, and by 2020, Croatia had successfully met all formal convergence criteria—including price stability, sound public finances, and exchange rate stability—paving the way for a final decision on euro adoption.

The year was pivotal, as Croatia received crucial political endorsements. In July 2020, after nearly two years of preparation, Croatia was formally admitted into ERM II, often called the "euro waiting room." This required the kuna to maintain a central rate of 7.53450 to the euro with a standard fluctuation band of ±15%. Concurrently, Croatia joined the European Banking Union. These milestones were confirmed by the European Council and signaled a firm commitment from both Croatian authorities and EU institutions that the country was on an irreversible path to replacing the kuna with the euro.

Despite the stable peg, the broader economic context in 2020 was dominated by the COVID-19 pandemic, which caused a sharp recession. The government implemented significant fiscal measures to support the economy, leading to increased public debt. However, the currency peg itself remained unchallenged and provided an anchor of stability during the crisis, preventing exchange rate volatility. The focus throughout the year was less on managing currency fluctuations and more on finalizing the legal and technical preparations for the planned euro changeover, which was subsequently achieved on January 1, 2023.