Koruna To Convert At SKK30.13/EUR

July 2008 | Economic Analysis

The Slovak koruna will cease to exist on January 1 2009, and will be replaced with the euro at an exchange rate of SKK30.13/EUR. The strong conversion rate, at the newly revalued ERM-2 central parity, will help to ensure that inflation does not spike alongside the changeover. That said, the loss of independent monetary policy does raise risks to inflation over the long run, especially as Slovak growth is forecast to outperform the eurozone average through our five-year forecast period.

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