Czech Republic: Czech koruna strengthens in August and maintains solid momentum
August 31, 2011
By 31 August, the Czech koruna (CZK) appreciated 1.6% in nominal terms over the previous month and traded at CZK 16.7 per USD, which represented the strongest gain since April. The koruna has appreciated an accumulated 12.3% versus the USD this year and at the current level, is trading 17.4% stronger than the same month last year. Owing to the persistent appreciation of the koruna and slower demand from Germany - the Czech Republic's major trading partner - exports lost steam in July, rising 9.3% year-on-year to CZK 219 billion (USD 12.8 billion), which was below the 9.7% expansion observed in June and marked the slowest pace since December 2009.
Author: Ricardo Aceves, Senior Economist