Slovenian Tolar


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Slovenian Tolar

The former currency of Slovenia. It was introduced in 1991, replacing the Yugoslav dinar. In 2004, the tolar was pegged to the euro, which eventually replaced it in 2007.
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Imported inflation is approximated by the nominal exchange rate of the Slovenian tolar vis-a-vis the euro.
In this scenario, the exchange rate is assumed to be 241 Slovenian tolar per euro in 2006 on average and 245 SIT/EUR from 2007 on.
In nominal terms, the Slovenian tolar depreciates by about 8% until 2010, i.e.
As in the respective scenario of the previous section, the exchange rate of the Slovenian tolar is fixed in such a way that from 2005 to 2007, it depreciates in nominal terms by around 2.25%.
In real terms, the Slovenian tolar appreciates by more than 5% until 2010.
As announced in a previous issue (Europolitics 3109), the European Commission proposed a fixed and irrevocable conversion rate of 239.640 Slovenian tolars for one euro on 28 June in the context of preparations for Slovenia's scheduled switch to the single European currency on 1 January 2007.

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