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Czech crown is at its top, the euro is the cheapest since 2008

In the past 15 years, the Czech crown has not been stronger against the euro. Imported products including gas are becoming cheaper, holidays abroad are more affordable than before. Economists advise the Czechs to take advantage of the current situation.

The value of euro fell to 23.34 CZK / EUR, which is the lowest value since July 2008. Also against the dollar, the koruna was stronger more than a year ago, the current exchange rate is 21.26 CZK for 1 USD.

"The exchange rate of the Czech crown is the result of the policy of the Czech National Bank and its pressure to tame inflation. Both through its interventions and its rhetoric, the CNB is showing the market that it wants and will keep koruna strong," explains economist Pavel Peterka.

According to economists, Czechs should make good use of the current situation - especially those who want to invest abroad or think about spending vacation there.

"Czechs travelling abroad can buy foreign currency more cheaply. Their purchase power abroad is thus automatically higher," adds economist David Marek.

In addition, people can buy imported goods at a lower price. "This applies to energy commodities that are billed in US dollars. This can be noticed, for example, in the case of fuel, where the price drop is visible. It also could have an impact on the price of imported food and other consumer goods," says Peterka.

Whether the crown will maintain its strong position in the future is not at all certain. "There are risks that the crown will weaken against both the euro and the dollar. It's difficult to estimate in advance, there are many factors at play," adds Peterka.

Logically, the current situation is not favourable for exporters. "For companies focused on exporting abroad, the current exchange rate of the crown is a complication. Compared to foreign competition, their prices are becoming less competitive," says Marek.

ZDROJ: TV Nova (14.4.2023)


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