Investor Presentaiton
The supervision of the investment fund market
is handled by the CNB.
The stock exchange
The Prague Stock Exchange (PSE) began trad-
ing in April 1993. Trading on the PSE is con-
ducted via licensed securities dealers, who are
also PSE members.
These are primarily major banks and brokers.
If a common investor decides to invest in the
exchange, they need to contact one of the PSE
members or become a member themselves.
It is currently possible to conclude trades either
directly through the regulated market (adminis
trated by the PSE) or the non-regulated market,
primarily intended for OTC (over-the-counter)
trades (administrated by the Central Deposito-
ry). Since 2012, trades on the regulated market
are traded via the stock international exchange
platform - Xetra. The basic criteria for trading
and listing on either market can be found at:
www.pse.cz.
Foreign exchange
Regulation
The Act on Foreign Exchange fully implement-
ed the obligations which the Czech Republic
accepted under international agreements in re-
lation to the free movement of capital and the
system of payments. The Czech Republic has
concluded many agreements with other coun-
tries on the promotion and reciprocal protec-
tion of investments.
Market development
The exchange rate of the Czech crown (CZK)
to the euro (EUR) as well as to other main cur-
rencies was affected by the intervention of the
CNB, which started in November 2013 (see
Figure 11). The CNB announced its intention
to keep the Czech currency below the level of
27 CZK/EUR. The intervention was primarily
driven by the fact that inflation had been well
below the inflation target for a prolonged pe-
riod, potentially threatening deflation. The CNB
subsequently announced that it will not discon
tinue using foreign exchange market interven-
tion as a monetary policy instrument sooner
than in the second half of 2016.
As is shown in the graph below, during 1H 2015,
the CZK stayed around the threshold of 27 CZK/
EUR set up by the CNB and the Czech crown
significantly depreciated to 25.5 CZK/EUR
against the US dollar (March/April 2015). These
movements were caused by a weak euro due
to the Greek crisis and the expected increase
of interest rates by the FED. These two effects
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