According to a survey conducted by HN, Czech businesses and analysts predict that the koruna will weaken by the end of the year. The most common exchange rate expected by entrepreneurs and analysts is 24.50 korunas per euro.
The strong domestic currency has been causing significant complications for Czech companies dependent on exports to the eurozone. Entrepreneurs and analysts interviewed by HN unanimously view the current exchange rate as overvalued and anticipate a depreciation of the domestic currency by the end of the year. Yesterday, the euro was trading at around 23.90 korunas.
“The current exchange rate does not correspond to domestic labor productivity and added value. I expect the koruna to stabilize at 24.50,” said Norbert Hrabalk, CEO and co-owner of the engineering group 3H Invest, which focuses primarily on the energy sector.
The anticipated weakening of the koruna is expected to provide some relief for Czech businesses, making their exports more competitive in the eurozone market. However, the exact timing and extent of the depreciation remain uncertain.
In other news, HN is offering a subscription package for 40 Kč for 4 weeks, providing access to all articles, the option to cancel at any time, and the added benefit of audio versions of all articles.
What is the expected exchange rate between the koruna and the euro, and how will it impact Czech businesses that heavily rely on exports to the eurozone
According to a recent survey conducted by HN, Czech businesses and analysts are predicting that the koruna will weaken by the end of the year. The most commonly expected exchange rate among entrepreneurs and analysts is 24.50 korunas per euro.
The strong domestic currency has been causing significant difficulties for Czech companies that heavily rely on exports to the eurozone. Entrepreneurs and analysts interviewed by HN are unanimous in their view that the current exchange rate is overvalued and anticipate a depreciation of the domestic currency by the end of the year. Yesterday, the euro was trading at around 23.90 korunas.
“The current exchange rate does not reflect domestic labor productivity and added value. I expect the koruna to stabilize at 24.50,” said Norbert Hrabalk, CEO and co-owner of the engineering group 3H Invest, which primarily focuses on the energy sector.
The anticipated weakening of the koruna is expected to provide some relief for Czech businesses, as it will make their exports more competitive in the eurozone market. However, the exact timing and extent of the depreciation remain uncertain.
In other news, HN is now offering a subscription package for 40 Kč for 4 weeks. This package includes access to all articles, the option to cancel at any time, and the added benefit of audio versions of all articles.
It’s disheartening to see predictions of a potential decline in the Czech Crown by the end of the year. Let’s hope that businesses and analysts are proven wrong and the currency remains strong for the benefit of the Czech Republic’s economy.
It’s disheartening to hear that analysts and businesses are foreseeing a decline in the Czech Crown by the end of the year. Let’s hope for unexpected positive developments that might defy these predictions.