Monday, May 27, 2024

Slovak Krona (SKK)

The Slovak Krona (SKK) was the official currency of Slovakia until 2009.

However, as Slovakia joined the European Union (EU) in 2004 and adopted the euro on January 1, 2009, the Slovak krona was replaced by the euro (EUR) as the country’s official currency.

The euro is managed by the European Central Bank (ECB) and the national central banks of the euro area member states, including the National Bank of Slovakia.

History of the Slovak Krona

Following the dissolution of Czechoslovakia and the subsequent establishment of the independent states of Slovakia and the Czech Republic, the Slovak krona became the official currency of Slovakia on February 8, 1993.

The Slovak Krona replaced the Czechoslovak Krona at parity, meaning that 1 Slovak Krona was equal to 1 Czechoslovak Krona.

Before being replaced by the euro, the Slovak krona was subdivided into 100 smaller units called haliers.

Coins are available in denominations of 10, 20 and 50 halil, and 1, 2, 5 and 10 kronor.

Banknotes are available in denominations of 20, 50, 100, 200, 500, 1,000 and 5,000 kronor.

Transition to Euro

Slovakia’s adoption of the euro is the result of its accession to the EU and its commitment to fulfill the convergence standards set out in the Maastricht Treaty.

Convergence criteria include requirements such as low inflation, low public debt, stable exchange rates and low long-term interest rates.

After meeting these criteria, Slovakia joined the Eurozone on January 1, 2009, and the euro became its official currency.

During the transition period, the Slovak krona and the euro are in circulation at the same time, with a fixed exchange rate of 30.1260 Slovak krona to 1 euro.

After the transition period, the Slovak krona will no longer be legal tender and all transactions in Slovakia will be conducted in euros.

Summary

The Slovak krona was the official currency of Slovakia from 1993 until it was replaced by the euro in 2009.

The currency is subdivided into 100 halilis and comes in a variety of coin and banknote denominations.

After joining the European Union and meeting the convergence criteria set out in the Maastricht Treaty, the euro was adopted as the official currency of Slovakia.

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