Slovak koruna was quiet on Thursday

The Slovak forex market was quiet on Thursday. The unit moved in a narrow range of EUR/SKK 37.36-37.42 during the day. It opened at around EUR/SKK 37.40 and experienced some firming pressure linked to the moves on eurodollar market as some foreign players were selling USD and buying SKK. The government approved some tax changes effective from January 2007. It lowered the VAT on pharmaceuticals and some medical goods from 19% to 10%. The shortfall from VAT change should be balanced partially through the change lowering deductibles to wealthier citizens. The government said did not propose some change to Slovak pension system so far. But it remarked it will be necessary to do some steps next year. The VAT change should decrease budget revenues by SKK 2.7 bn or 0.18% of GDP and was a point of criticism from the central bank. Today we expect quiet trading day.

ČSOB - Investment research