It also sets up a government debt agency to buffer fluctuations in currency-exchange rates.

The company said that without the effects of currency-exchange rates, its order growth would have been roughly two percentage points higher.

But it said that revenue growth fell short of expectations because of unfavorable currency-exchange rates and the effects of the economic trouble in Asia.

Philips attributed the decline to fluctuations in currency-exchange rates and a sharp downturn in the computer business.

Without the effects of currency-exchange rates, the company said its order growth this quarter would have been approximately 3 percentage points higher.

The gap between the official currency-exchange rate and the black-market rate has steadily narrowed.

Norwegians are 26 percent better off than Americans based on currency-exchange rates.

Fluctuations in currency-exchange rates caused by a strongerdollar reduced total sales by 2.2 percent, the company said.

And many tourists say that they would visit regardless of crime rates or currency-exchange rates.

Other analysts said confidence would grow with stable currency-exchange rates and lower interest rates.