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ECONOMIC BRIEFS

NBS does not see devaluation of the crown this year

According to the director of the NBS's Institute for Monetary and Fiscal Studies, Jozef Makúch: "Devaluation as a tool for solving Slovakia's balance of payments deficit would not bring adequate results, and that is why the NBS does not plan on devaluing the Slovak currency this year. The main reason is that Slovak exports are highly import-demanding and a change in the exchange rate would not solve the foreign trade deficit problem. Devaluation would only be feasible as a reaction to non-systemic changes, such as a significant weakening of the Czech crown, since the Czech Republic is still Slovakia's largest trade partner."

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