Slovakia’s Central Bank to Regulate Currency Circulation and Authentication
The National Bank of Slovakia has been granted exclusive rights to issue banknotes and coins in the country, as well as commemorate notes and coins. According to Article 16, the bank will have sole authority over the production and distribution of these currency forms, which will be legal tender with their nominal value stated in Slovak korunas or euros.
Responsibilities of the National Bank of Slovakia
The National Bank of Slovakia has been tasked with:
- Controlling money circulation
- Printing banknotes
- Minting coins
- Ensuring the administration of money in stock
- Protecting and securing them
- Replacing worn and torn banknotes and coins
- Storing and destroying printing plates and minting dies
New Euro Introduction Brings Changes to Cash Transactions
As of the euro introduction date, it will be prohibited to:
- Refuse to accept legal tender in its denomination without a lawful reason
- Condition acceptance by other than lawful reasons
Payees will have the right to check banknotes and coins upon receipt for their correct number and authenticity. Legal persons and natural persons in Slovakia will be required to accept euro banknotes and coins as payment, but may refuse them and return accepted legal tender into circulation. Banks, credit institutions, and other financial institutions will also be required to accept euro banknotes and coins without restriction.
Prohibition on Damaging or Destroying Legal Tender
Article 17b prohibits knowingly damaging or destroying legal tender without a lawful reason. Mutilated, incomplete, or damaged euro banknotes and coins will be exchangeable for undamaged valid ones at the National Bank of Slovakia and banks, subject to certain conditions and rules.
New Regulations for Authenticating Euro Coins
The National Bank of Slovakia has been authorized to issue a legal regulation laying down requirements for establishing the authenticity of, testing, and sorting euro coins. This move aims to ensure the integrity of the euro currency in circulation.
Key Takeaways
- The National Bank of Slovakia will have exclusive rights to issue banknotes and coins
- The bank will be responsible for controlling money circulation and printing banknotes
- Payees have the right to check banknotes and coins upon receipt for their correct number and authenticity
- Legal persons and natural persons in Slovakia must accept euro banknotes and coins as payment
- New regulations aim to ensure the integrity of the euro currency in circulation
Conclusion
The introduction of the euro currency is expected to bring greater economic stability and integration with other European Union member states. The new regulations outlined above aim to ensure a smooth transition and maintain the integrity of the currency in circulation.