Currency risk is one of the most significant risks in bank operations. The exposure of banks to currency risk is the subject of research in this thesis. Currency risk means the risk of unfavorable exchange rate movements that can have a significant impact on the value of an active and passive bank denominated in a foreign currency. It appears if changes in the international value of the domestic currency or changes in the exchange rates of world currencies cause unfavorable effects on the banks profit and loss account and cash flows. With the introduction of the euro as the national value in the Republic of Croatia, the currency risk is reduced. In addition to the reduction of currency risk, there are other advantages of the introduction of the euro, as well as disadvantages. The paper will investigate the impact of the introduction of the euro on the operations and financial reporting of banks. Currency risk management involves looking at the foreign exchange position, predicting the future movement of international values of the domestic value and currency relations of world currencies, and taking measures and activities to minimize risks in dealing with foreign currencies. The currency risk measurement methods that will be defined in the paper are sensitivity analysis, extreme event testing, scenario testing and the Value at risk method. The focus of the paper is on the accounting monitoring of currency risk in bank operations, and the accounting policy and practice will be presented, such as initial and subsequent measurement and loss/gain realized due to exchange rate changes. Research on currency risk reporting will be conducted through the presentation of annual financial statements and reports for the needs of supervisors based on the examples of Zagrebačka banka d.d. and Privredna banka Zagreb d.d.