(Adds analyst comment, background)
By Martin Dokoupil
BRATISLAVA, March 6 (Reuters) - A persistent firming of the
Slovak crown is not positive for the export-driven economy,
central bank (NBS) Governor Ivan Sramko said on Thursday,
knocking the crown more than one percent lower.
The crown has gained 4.5 percent against the euro over the
past month, scaling record highs this week on speculation that
Slovakia might revalue again its euro peg in the ERM-2 exchange
rate mechanism.
But a question at what level the crown should be swapped for
euros from January next year has divided the NBS's 10-member
board with some members arguing a stronger rate would help
reduce inflationary pressures after entry.
Others including Sramko have spoken in favour of a weaker
rate.
"(Crown firming) significantly reduces funds which firms are
getting and we need to realise that our economy is based on
exports," Sramko was quoted as saying by SITA news agency.
"So the impact of permanent crown firming is not seen as
positive for the economy," he said.
The crown hit an all-time peak of 32.250 per euro <EURSKK=>
earlier this week. It retreated to a one-week low of 32.760
following Sramko's comments from 32.380, but later recovered
slightly to stand at 32.669 at 1239 GMT.
Sramko said a strong rate for the crown's conversion versus
the euro would not benefit Slovaks, nor would delaying euro
entry.
Slovakia, whose euro bid will be assessed in April or May,
raised the crown's central rate within ERM-2 by 8.5 percent to
35.4424 per euro last March as the economy grew strongly.
Finance Minister Jan Pociatek said last week he could not
rule out another revaluation, while Prime Minister Robert Fico
said the conversion rate should be one that will not fuel
inflation, which appeared to back a strong rate.
Sramko also played down the role of the crown's strength in
efforts to bring down inflation, which rose to a 13-month high
of 3.2 percent on the year by EU standards in January.
"In economies such as Slovakia the currency does not play a
dominant role in inflation developments but external factors
do," he said.
The market expects that the rate at which the crown enters
the euro zone will be the same as the ERM-2 central rate
existing at the time. This would be in line with previous
practice when other currencies have entered the euro zone.
"The governor clearly pays more attention to exporters'
interests and favours a weaker exchange rate," said Maria
Valachyova, senior analyst at Slovenska Sporitelna.
"It's hard to say which side prevails as not all of the
board members go public with their views," she said.
A poll of 15 economists showed that an exchange rate of
around 31 crowns per euro was a "theoretically optimal" level.
(Additional reporting by Martin Santa, writing by Martin
Dokoupil; editing by Stephen Nisbet)
