Spectator on facebook

Spectator on facebook

BUSINESS SHORTS

Crown sets new record at 34.06 SKK/EUR

THE SLOVAK crown continued its record-breaking streak against the euro in recent weeks, hitting a new strongest-ever level of 34.06 SKK/EUR on December 28.

Commenting on the development, ČSOB bank dealer Erich Pápai ascribed the firming of the Slovak currency to persistent low liquidity on the forex market, as well as the absence of client and commercial bank demand for the euro. Low levels of trading are sufficient to make the national unit stronger.

The Slovak crown is now the leading currency across the region, causing other Central European currencies to firm as well, the analyst said. "As long as the central bank (NBS) doesn't halt this development, it looks as if we are going to see the crown go beyond Sk34 per euro this year," Pápai said.

The NBS entered the market almost immediately on December 28 after two verbal interventions earlier in the month to stop the continued firming of the Slovak crown, which it claimed did not correspond with the development of the Slovak economy.

"The reason for the move was the rapid firming of the crown against the euro because of low liquidity on the forex market," NBS spokesman Igor Barát explained.

Following the intervention, the currency weakened sharply to Sk34.41 per euro shortly before midday.

Further strengthening should continue in 2007 as Slovakia continues on its way towards adopting the single European currency in January 2009.

Top stories

General Prosecutor filed a motion for the dissolution of ĽSNS

The Slovak Supreme Court received a motion to dissolve the extreme right ĽSNS party founded and led by Marian Kotleba.

Jaromír Čižnár

Russian spies allegedly recruit also Slovaks

They are using martial art clubs in Germany and dozens more in other EU states, in the Western Balkans, and in North America.

Illustrative stock photo

EC scrutinises state aid for Jaguar Photo

There is a question whether the scrutiny may impact the carmaker’s plans to invest in Slovakia.

The construction site of a brand new plant of Jaguar Land Rover near Nitra.

GLOBSEC forum will host guests from 70 countries

The 12th year of the conference will be attended by the highest number of participants in its history.

Slovak President Andrej Kiska gives the opening speech of The Globsec 2016 security conference.