GO
Loading...

Slovakia's Central Bank Buys Euros

Slovakia's central bank on Thursday began buying up euros in a bid to stem appreciation of its own currency, the koruna, a bank spokesman said.

On Wednesday, the Slovak koruna fell to 34.02 against the euro but after the bank's intervention Thursday, it rose to 34.39, said bank spokesman Igor Barat, up from a morning low of 33.92 koruna.

"The central bank is intervening to stop the koruna from firming too quickly amid low market liquidity," Barat said.

Earlier this month Slovak central bank said that the country's current account deficit widened to 110 billion Slovak crowns ($4.2 billion), or 34.7 billion koruna ($770 million) more than the same time a year ago.

Slovakia aims to join the euro zone in 2009 but must cut its deficit to 3% of gross domestic product to meet European Union criteria, along with reducing its inflation rate.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More*

Don't Miss

U.S. Video

  • Discussing current market conditions and trading through the end of the year, with Kathy Jones, Charles Schwab; Anthony Chan, Chase; Sam Stovall, S&P Capital; and John Manley, Wells Fargo Funds Management.

  • Are the best deals on Black Friday or are shoppers seeing them already? Insight, with Barbara Kahn, Wharton marketing professor, and Joe Feldman, Telsey Advisory Group.

  • Michael Kelly, Unconventional Partners, discusses how companies use social media for marketing purposes.