This has been the first expansion of the monetary union since Lithuania joined in 2015. A fixed conversion rate was set at 1 € = 7.53450 kn.

“This marks an important milestone in the history of Croatia, of the euro and Schengen areas, and of the EU as a whole. It follows a period of intensive preparation and substantial efforts by Croatia to meet all the necessary requirements,” European Commission said.

Croatia's previous currency, the kuna, has used the euro as its main reference since its creation in 1994, and a long-held policy of the Croatian National Bank has been to keep the kuna's exchange rate with the euro within a relatively stable range.

The 20 eurozone members are Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. (ILKHA)