Central bank says forex reserve decline has stopped

The Slovak central bank said on March 5 it expected no further significant decline in the hard currency reserves of the country's commercial banks. Earlier, the central bank (NBS) had reported that the foreign exchange reserves of Slovakia's commercial banks fell around $0.9 billion in the week between February 24 and March 3, pulling Slovakia's total reserves, including those of commercial banks, down to $4.64 billion from $5.6 billion.

"The foreign exchange reserves of commercial banks have probably settled down at their natural level, and the NBS does not expect a further significant decline in the upcoming period," the NBS said in a statement.

Commercial banks' reserves have fallen to $1.75 billion from $3.24 billion since February 17. "The decline [over the past two weeks] was related to the decision by the National Bank of Slovakia Banking Council to abolish the [required] foreign currency position of banks for monetary purposes," the bank said without elaborating.

It said that before the decision, some commercial banks had artificially increased their assets along with their liabilities to meet the foreign currency position coefficients required previously by the central bank.

Last week, the NBS said it therefore considered the reserves decline purely technical. "The decline in foreign currency reserves of the banking sector has no impact on the currency and does not affect the monetary policy of the central bank," the bank said.

Top stories

The interactive exhibition Elements of Art is dedicated to the 70th anniversary of the Žilina Music Conservatory on November 18, 2021.

Weekend: US basketball players score big in Slovakia

A potential Christmas present, one hike, nice sports stories, and more. Dive into reading this week's roundup.


26. nov

News digest: Employers finally get manual for employee Covid testing

Bratislava starts the Christmas season online and the refurbishment of one of the biggest fountains in Slovakia. Tatra ski resorts have switched on their snow-making machines.


26. nov
Christmas trees began appearing in the squares during the First Czechoslovak Republic and there is a touching Christmas story behind it.

Lockdown for just two weeks? Forget it, say experts

The experts advising the government expect some rules may lift before Christmas, but only for the vaccinated.


26. nov
Chicago Blackhawks right wing Marián Hossa prepares for a face off against the Florida Panthers during an NHL hockey game in March 2017.

The (in)conspicuous superstar that had to suffer to achieve great things: Marián Hossa

The Slovak hockey player has been inducted into the Hockey Hall of Fame.


25. nov
Skryť Close ad