In Croatia, exchange rate is formed through the Croatian National Bank. The CNB determines the value of the kuna in relation to other currencies each working day on the basis of agreed exchange rates and foreign exchange rates. The CNB negotiates or determines the exchange rate by which it buys and sells foreign exchange and effective money on the foreign exchange rate market. Establishing a system of foreign exchange rates that works smoothly represents a prerequisite for efficient international trade, while the stability of the exchange rate is a key prerequisite for sustainable economic growth. The CNB chose the stability of the kuna against the euro and maintains a crawl-like arrangement. In addition, the CNB manages foreign currency exchange rates on the foreign exchange market through foreign exchange interventions. As far as balance of payments is concerned, the trend of capital transactions between 2000 and 2015 is relatively stable, while oscillations can be monitored for current and financial transactions, which is related to changes in the movements of the exchange rate.