Money matters

This is the 500 SKK note, with a beautiful image of Bratislava Castle (Hrad) overlooking the Danube. 500 SKK is worth about $20.

U.S. currency features images of presidents, going back to George Washington in the 18th century. The Slovak currency features images of important historic figures and sites, going back to the 9th century: http://www.slovensko.com/about/banknotes-coins/

Although Slovakia joined the European Union (EU) in 2004, it has not yet converted to the Euro, which requires stringent economic tests (such as a low inflation rate and national deficit). According to The Slovak Spectator, the on-line English-language newspaper (http://www.slovakspectator.sk/), they hope to convert in early 2009. The government has contracted with a public relations agency to educate the public next year about the conversion, and government officials have been speaking out to squelch rumors and to report that the target inflation rate appears to have been reached.

The neighboring states of Poland, Czech Republic, and Hungary also joined the EU in 2004, but seem to be having second thoughts about the Euro, at least according to some news reports, e.g.: http://www.iht.com/articles/2006/02/14/business/euro.php

That means that I will be surrounded by countries with five different currencies, all within an hour or two by train. In addition to those above, Vienna, Austria (which is on the Euro) is about 40 miles west of Bratislava, a short one-hour train ride.

Thanks to credit cards and ATM machines, all these different currencies should be manageable. Still, this is a reminder of the transitions all these former Soviet satellite states are still addressing.

The tourist books typically advise you to have some local currency when you land in another country. But I discovered that the American Express Travel Service, a major local bank that trades numerous currencies, and a major currency exchange here do not trade the Slovak Koruna. I wondered if that was simply because it was a small country and there wasn't much call for their currency, so I called customer service at American Express to inquire. His explanation: the Koruna is too easy to counterfeit, so nobody here will carry it. I don't know if that's true, but trading for some Slovak currency will have to wait until I can get to a bank in Bratislava.

In the meantime, as the dollar continues to sink, putting some money into Euros seemed like a good idea and might even turn out to be a wise currency investment. The dollar has been sinking against the Euro, the British Pound, and, yes, the Slovak Koruna. Americans used to benefit from weak European currency, so I suppose it's fair that the tables are turned. I just hope things don't get much worse with the sinking dollar!