Cabinet traumatizes crown

SLOVAKIA's central bank (NBS) again had to step into the money market to defend the weakening Slovak crown. It was the third NBS intervention since the June 17 general elections.

On July 12 the crown weakened to 38.75 SKK/EUR, prompting the NBS intervention. It is estimated that NBS used around €1 billion (Sk38.7 billion) to defend the currency. Since the elections, the NBS has spent some Sk89 billion to help support the crown. Although it still has around €12 billion in foreign currency reserves, it is expected that the bank will soon have to make use of another tool to support the crown - an increase in key interest rates.

According to the Hospodárske noviny daily, the devaluation of the crown is the result of uncertainty caused by the steps of the new government, although PM Robert Fico rejects the idea.

Investors are also discouraged by the differing statements made by Fico and his finance minister Ján Počiatek on issues relating to the cabinet's future plans, such as the extra tax on banks.

Compiled by Martina Jurinová from press reports

Top stories

News digest: Lockdown effects not fully seen yet, Bratislava shuts schools

Lockdown reduces mobility and new cases, but not hospitalisations. Cabinet approves €500 vouchers for seniors.


7 h
Some schools in Slovakia have been closed.

Some schools in Bratislava will switch to remote learning

Only kindergartens and grades one through four will remain open.


8 h
Finance Minister Igor Matovič presented his latest idea to boost vaccination rate and help businesses hit by the pandemic.

Finance Minister Matovič has a new way of boosting vaccination: €500 vouchers

The vouchers should be given to old people who decide to get vaccinated, to be subsequently spent on goods and services.


30. nov
Skryť Close ad