dollar (taking Slovenia's Euro Area membership since 2007 into account), the exchange rate between the Slovenian tolar
and the euro (accounting for Slovenia's own currency before joining the Euro Area), and CPI inflation in Slovenia.
Therefore, foreign demand is measured by Euro Area real GDP, and only the exchange rate between the Slovenian tolar
and the euro is considered.
SPENDING euros in Slovenia has been hard up to now with restaurants and cafes rarely accepting them, although that should ease now the country is in the EU and euros have replaced the Slovenian tolar
As there was a separate Slovenian currency (the Slovenian tolar
) in existence only until the end of 2006, the nominal exchange rate against the euro is constant by definition, and real appreciations and depreciations occur primarily through changes in relative prices and inflation differentials.
Despite the different directions of domestic and foreign interest rate movements, which halted depreciation at a higher pace throughout 2002, real appreciation of the Slovenian tolar
amounted to 5.3 percent for the 12=month period up to February 2003.
But the Czech koruna, the Lithuanian litas and the Slovakian koruna have all appreciated, while the Hungarian forint, the Polish zloty and the Slovenian tolar
have all fallen slightly, while the Romanian leu and the Turkish lira have lost well over half their value.