Brussels, 29/05/2008 (Agence Europe) - At the behest of the Slovakian authorities, the Slovak koruna has been revalued compared to the euro by 17.6472 percent. Thee new central rate of the koruna is now 1 euro = 30.1260 koruna. Slovakian currency may continue to fluctuate by more or less 15% around the central rate, in line with the European Rate Mechanism II rules (ERM II). The new compulsory intervention rates within ERM II are therefore set at 34.6449 and 25.6071 koruna. The decision, which took effect on Thursday 29 May, was taken by joint procedure between the eurozone member states, the European Central Bank and the Danish, Estonian, Latvia, Lithuanian and Slovak central banks, as well as with the European Commission, that announced it on Wednesday 28 May, in the evening. In its press release, the latter explains that revaluation of the rate of exchange for the Slovakian koruna is justified by “ongoing improvements in underlying fundamentals”. It will contribute to helping the country to “maintain macroeconomic stability”, the Commission goes on to say, stressing that revaluation is on the base of a “firm commitment” by Slovakian authorities to continue the appropriate policies to ensure sustainable price stability, support competitiveness and strengthen the resilience of the economy and the effort of budgetary consolidation.
This rise in the exchange rate is in line with the strong appreciation over recent weeks of the Slovakian currency, which has come considerably closer to the threshold authorised by the previous fluctuation margin. The new reference rate could be close to the future parity which will be established in a fixed and irrevocable manner for conversion to the euro in July by the Ecofin Council. Prior to this, the heads of state and government should approve the endorsement by the Commission and ECB to the country's accession to the eurozone on 1 January 2009 (EUROPE 9657). (A.B.)