Exchange rate as a instrument of monetary policy, likely can define in which direction and what kind of speed it will develop economy of individual state. Accordingly, holders of monetary policy, in today's globalized world are dealing with a problem of choice of that foreign exchange system, in which they can realize their total economic potential. Some states, like Hungary and Czech Republic, shifting to more flexible exchange rate regimes, they have achieved much better results than others relatively similar countries, which ones who decided for less flexible exchange rates regimes. However, we should keep in mind, that this choice is not easy and often requires leaving one to achieve another goal. Republic Croatia, for many years, achieves goal in terms of inflation stability. On the other hand, there is often a question, would total results be like that, that it has gone through some of the more flexible forms of exchange regime. The goal of the empirical part of this paperwork was to determine which variables influence to the formation of the exchange rates HRK/EUR. Applying OLS coefficient estimation method results were achieved, out of a total of ten variables, four significant influences on the formation of foreign exchange rates HRK/EUR.