“The flight of investors to safe assets is also significantly affected by the development of the currencies of our region, thus weakening not only the Polish zloty and the Hungarian forint,” said Jakub Seidler, chief economist of the Czech Banking Association.
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“Compared to mid-February, the zloty weakened against the euro by more than nine percent, and the forint by 11 percent. The weakening of the koruna by less than six percent is weaker in this respect, which is also due to the CNB’s presence on the market, which prevents a more significant weakening of the koruna, ”said Seidler.
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The CNB began intervening in favor of the koruna on Friday after coordinating with the Polish central bank. “The CNB is probably still active on the market today with the aim of not letting the koruna weaken above CZK 25.90 per euro,” the economist added.
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“The koruna weakens against the euro in the morning to 25.85 CZK / EUR. It is thus approaching the border where the CNB struck on Friday. She has the opportunity to direct the koruna further and the question is whether she would do so again only in small steps, “said Tomáš Vlk from Patria Finance.
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On Friday, the CNB announced on its website that it was conducting operations to dampen excessive exchange rate fluctuations and the weakening of the koruna.
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“The CNB has high foreign exchange reserves in an international comparison, the use of which in an exceptional situation in which we currently find ourselves is fully justified,” she said.
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The bank will not provide further information on the mentioned operations. Analysts said that the central bank will probably not allow the Czech currency to weaken to the level of 26 crowns per euro, or above it.
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