November 28, 2005

Press release

Slovak Koruna Included in the ERM II

Following the agreement of the Finance Ministers of the euro area countries, President of the European Central Bank and Finance Ministers and central bank Governors of Cyprus, Denmark, Estonia, Lithuania, Latvia, Malta, Slovenia and Slovakia of 25 November 2005, the Slovak koruna is included in the Exchange Rate Mechanism II (ERM II) as of 28 November 2005.

The central rate of the Slovak koruna has been set at 1 euro = 38.4550 koruna.

The ERM II standard fluctuation band of plus or minus 15% will be observed around the central rate of the koruna. The lower compulsory intervention rate is [32.6868 SKK/EUR] and the upper intervention rate is [44.2233 SKK/EUR].

The agreement on participation of Slovakia in the ERM II is based on the commitment of Slovakia to pursue sound fiscal policies  and promote wage developments that are kept in line with productivity growth. This policy is in conformity with the Convergence Programme of the Slovak Republic and the Monetary Programme of the NBS.

With Slovakia´s entering the ERM II, the European partners confirm that the economic policies in Slovakia create a stabile environment. The exchange rate stability of the individual states of the European Union is a common interest of its members.

The central rate was determined on the level of the market exchange rate. The membership of Slovakia in the ERM II and the central rate will contribute to the stabilization of the exchange rate development of the Slovak koruna and its nominal convergence. At the same time they will support a stable development of the Slovak economy.

Entering the ERM II is an important step in the process of the euro adoption in the Slovak Republic. It commences the second stage of the process. This stage should end with the fulfilment of the Maastricht Convergence Criteria. The acceptance of the euro as a legal tender in the Slovak Republic will set the seal to the whole process.

Igor Barat
Spokesman of the NBS
National Bank of Slovakia
Public Relations Department, Press Section
Imricha Karvasa 1, 813 25 Bratislava, Slovak Republic
Tel.: +421-2-5787 2161,+421-2-5865 2161, +421-2-5787 2166, 421-2-5865 2166
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