Investor Presentaiton
Foreign exchange
REGULATION
The Act on Foreign Exchange fully implements the
obligations that the Czech Republic accepted under
international agreements in relation to the free movement
of capital and the system of payments. The Czech Republic
has concluded many agreements with other countries on the
promotion and reciprocal protection of investments.
MARKET DEVELOPMENT
In November 2013, CNB initiated interventions to keep the
CZK to the EUR above 27 CZK/EUR. This intervention affected
the exchange rates of many other currencies to the CZK. The
intervention was ended in April 2017 and the CZK started to
appreciate to most other currencies. Due to the spread of
the SARS-CoV-2 virus the Czech crown started to weaken in
March 2020.
After the release of the interventions, the foreign exchange
rate of the CZK started to appreciate to both EUR and USD.
In the 10 of 2018 CZK to USD reached its minimum at 20.163
and started to fluctuate between 22 and 23 CZK to the USD.
Development of the CZK to EUR showed gradual appreciation
that started at 27 CZK to the EUR in April 2017 and reached its
minimum at 24.795 in mid-February 2020. After that, mainly
due to the spread of the SARS-CoV-2 virus, the CZK to both
the USD and the EUR suffered a depreciation. During the rest
of the year 2020 and throughout the year of 2021, the CZK has
been appreciating with some fluctuations compared to the
EUR, however the appreciation of the CZK compared to the
USD stopped mid-2021 and the exchange rate was hovering
around 22 CZK for USD for the rest of the year.
As of 05 April 2022, the foreign exchange rate of the CZK to
the EUR was 24.340; the exchange rate of the CZK to the USD
was 22.191.
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