Slovakia ties its currency to euro

Slovakia has taken a major step toward adopting the euro by entering the European Exchange Rate Mechanism (ERM-II), the ‘waiting room’ for joining the common currency.

The decision, in line with Slovakia's aim to introduce the euro in 2009, was made on Friday evening (26 November), but not announced until after the close of markets in Europe and North America.

Under ERM-II, the Slovak koruna is allowed to fluctuate in a band of plus or minus 15 percent on either side of the centr...