The European Central Bank (ECB) has commented on the revaluation of the Slovak crown’s so-called ‘central parity’ against the euro, which was approved on May 28 after the closing of markets by eurozone finance ministers, the ECB, and the finance ministers and central banks of Denmark, Estonia, Latvia, Lithuania and Slovakia. The new central parity is Sk30.126 to one euro. According to the ECB, the move was justified and supported by the ongoing improvement of underlying economic fundamentals in Slovakia, the SITA newswire wrote.
“Revaluation of the parity will support the Slovak authorities in maintaining macroeconomic stability," reads a common ECB statement, going on to say that the revaluation will also require the clear commitment of the Slovak side to pursue appropriate supportive policies, aimed in particular at sustainable maintenance of price stability, underpinning external competitiveness and strengthening economic resilience.
According to Mária Valachyová, an analyst at Slovakia's largest bank, Slovenská Sporiteľňa, revaluation of the central parity comes as a surprise. In March 2007, upon a previous revaluation of the parity to 35.4424 SKK/EUR, the central bank stated that this was an exchange rate close to the equilibrium value. “The new parity, which is stronger by fifteen percent, represents the economy's projected equilibrium maybe only after 2009,” Valachyová added. SITA
Compiled by Zuzana Vilikovská from press reports
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