Czech Koruna

CZK | Czech Koruna
  • In 1993 after the dissolution of Czechoslovakia (from the previous Czechoslovakian Koruna), a separate Czech and Slovakian Koruna were born. (In Slovakia, euro is used as the national currency of the country.)
  • In the Czech Republic, the majority of the population does not support the introduction of the Euro.
  • In order to mitigate the adverse impacts of the economic crisis of 2008, the Czech central bank started to communicate in 2012 that it was prepared to use the exchange rate to ease the monetary policy further if the need arose. The mere announcement exercised such a huge impact that no actual intervention was needed until November 2013, because the the exchange rate of the Czech Koruna weakened, therefore the monetary conditions eased, the impact of which lasted until the summer of 2013. The short-term outlook indicated that the previously effected monetary ease was not enough to reach the inflation target, so the National Bank announced that it was prepared to intervene in the foreign exchange market in order to be able to maintain the exchange rate close to CZK 27 to the euro. In addition to the above, they also announced that the central bank was prepared to make such interventions as long as it was necessary to reach the inflation target.
Country uses Czech Koruna:
  • Czech Republic