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Počiatek won't comment on speculations on central parity revaluation

The rapid firming of the Slovak crown since the EC's positive evaluation report on May 7 on Slovakia's readiness to adopt the euro has pushed the crown to near the lower limit of the allowed band in the ERM 2 rate mechanism, leading to speculation about the revaluation of the central parity.

The rapid firming of the Slovak crown since the EC's positive evaluation report on May 7 on Slovakia's readiness to adopt the euro has pushed the crown to near the lower limit of the allowed band in the ERM 2 rate mechanism, leading to speculation about the revaluation of the central parity.

However, Finance Minister Ján Počiatek refused to comment on this issue following the government session on May 28.

"You well know that I don't comment on this issue, and I think that I will keep on not commenting on it until July," said Počiatek.

July 8 is the expected date when the final conversion rate of the crown against the euro will be set. According to current development on the market, analysts and investors estimate its value to be between 30-31 SKK/EUR.

The central parity in ERM2 mechanism is currently at 35.4424 SKK/EUR, and the allowed +/- of the currency's movement is 15 percent. The lower limit of this range is at 30.126 SKK/EUR. During the trading on May 28 the crown firmed to 30.65 SKK/EUR, or 13.5 percent from the central parity. That's why several dealers expect a possible change of the central parity, which is designed to reflect the state of the real economy, earlier than the conversion date. TASR

Compiled by Zuzana Vilikovská from press reports
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