The koruna lost sharply after the defeat of the NB governor

esk weakened me in the afternoon and traded at 23.36 K per euro. This is due to the words of the governor of the Czech National Bank Zdeka Tmy, who said that a strong koruna will reach a lower rates in August. The exchange rate has so far been around 23 crowns per euro.

According to Darkness, a record strong crown “damages” the economy. The Czech koruna, which is the most powerful me in the world, has strengthened by 23% against the euro over the last year, and even by 41% against the dollar. The force, which is holding back inflation due to lower import prices, is offset by inflationary effects, including fuel and wage prices, ”said Bloomberg.

At the forefront of monetary policy, it is feared that the koruna is strengthening above the limit sustainable for the economy, along with the fact that exports are appreciating, that the development of the koruna’s exchange rate is reducing profits and tends to decline and close the factory.

“The stimulus that the crown expected from abroad eventually drank from domestic waters. Within a few minutes, the crown weakened by 35 halls. Although this is the strongest weakening in the last few months, the exchange rate has only returned to moderate values, ”described NextFinance analyst Vladimír Pikora.

The market reacted strongly for a long time

“The verbal intervention of the NB governor is the first in recent times to which the market has reacted sharply, or leads to the right deviation of interest rates. According to our opinion, there is no room for outside the annual rates and inputs may go down. The question is whether the time has come to cut rates, ”said Tom Vlk, an analyst at the Patria Online server.

“Although other verbal interventions may be temporary, changes in rates and a decline in yields should reduce the attractiveness of the currency. That would mean less pressure on the gym again, ”added Vlk.