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.