Czech Republic: Czech koruna strengthens in January
January 31, 2012
On 31 January, the Czech koruna (CZK) traded at 25.2 per EUR, which was 2.4% stronger than the previous month. The figure contrasted the 1.9% depreciation recorded in December. Nevertheless, at the current level the koruna is trading 3.9% weaker than the same month last year. Despite the gain observed by the end of January, the koruna has lost some ground since August 2011, when the CZK traded at its strongest level in three years. The Czech koruna strengthened in January on speculation that a resolution of the Greek crisis will increase appetite for assets in emerging markets. Meanwhile, the Czech National Bank expects the koruna to average 24.9 per EUR this year, before strengthening further to an average CZK 24.3 EUR in 2013.
Author: Ricardo Aceves, Senior Economist