EEK has actually had a fixed rate much longer, since about 1992. When the use of the Russian Rouble was terminated in Estonia and EEK was re-introduced (it was in use before WWII before Estonia was annexed to the Soviet empire), its rate was defined as 8 EEK = 1 DEM. Since then the rate has constantly remained the same. When DEM was fixed to EUR, EEK inherited its rate from the EUR/DEM fixed rate, thus becoming 1 EUR = 15,6466 EEK.John S wrote:Since, for example, Estonia's currency has been fixed and stable since 1999, obviously more then 2 years, could they technically switch to euro usage immediately after 2004-05-01 or must they wait until 2006?
If the stability of the national currency rate were the only criterion for entering the ERM then it would be straightforward for Estonia. But there are other criteria that are even more important, like low inflation rate, stable long-term interest rates, moderate budget deficit etc. OTOH, if I'm not mistaken, Estonia is likely to already meet these conditions as well.
Read more from the Bank of Estonia website:
http://www.bankofestonia.info/frontpage/en
and
http://www.bankofestonia.info/pub/en/ma ... roopaliit/
