It’s good having friends at the central bank

17 June 2008 by Mike Gogulski
Posted in economics | No Comments »

Someone walked away with a cool €13 million or so. Not bad for a day’s trading. Another victory for the market? Certainly a victory for having the right connections to the masters of the currency universe.

From The Guardian:

Slovaks open probe over possible euro leak-paper

BRATISLAVA, June 17 (Reuters) – The Slovak central bank (NBS) is investigating a suspected leak of information after suspicious deals took place before Slovakia revalued the crown’s euro parity peg last month, the daily Sme reported on Tuesday.

Slovakia revalued the central parity within the euro zone waiting room, the Exchange Rate Mechanism 2, by 15 percent to 30.1260 per euro on May 28, following rapid appreciation in the crown.

The unit jumped sharply in the hours before the revaluation. Dealers said players not usually active in the market had bought 500 million euros’ ($768 million) worth of the currency before the official release of the news, SME reported.

The paper quoted NBS spokeswoman Jana Kovacova as saying the bank was investigating a possible violation of a law on the handling of confidential information. Officials from the bank were not immediately available for comment.

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