This paper defines the position of the Croatian National Bank in the Republic of Croatia, its goals, framework and instruments. The primary objective of the Croatian National Bank as the central bank in the country is the support of the general economic policy of the government and the stability of the financial system. In order to achieve the aforementioned, the Croatian National Bank establishes and implements monetary policy, controls bank operations and carries all the attributes of the central bank as established in the Constitution of the Republic of Croatia. Monetary policy provides the optimum ratio of the quantity of money in circulation and the quantitative character of the social product within a national economy. It is reduced to the activities of the central bank relating to the issue and withdrawal of the money from circulation in order to provide adequate amount of money in the national economy. In doing so, the National Bank uses instruments of monetary policy: open market operations, reserve requirements, standing facilities, and other instruments and measures, all detailed in this paper.