Czech companies await stronger CZK in a year

At the end of 2016, the exchange rate of the Czech crown could make up around 26 CZK/EUR.

Three quarters of the Czech companies await that the Czech crown exchange rate to euro will rise to values around 26 CZK/EUR or even stronger ones if the Czech National Bank (ČNB) stops using the exchange rate as a monetary policy instrument at the end of the next year. That flows from the survey on Exchange rate risk and related Czech National Bank politics organized by the Confederation of Industry of the Czech Republic among its member companies in mid-November. The results of the survey have been presented at the traditional autumn meeting between the employers‘ representatives and the ČNB’s bank board on Monday 30th November.

Some 150 Confederation’s member companies took part in the survey. Almost one third of them await a rise in the exchange rate to the values around 26 CZK/EUR, even stronger Czech crown around 25 CZK/EUR await more than 35 percent of them. Only less than one sixth of the participants in the survey is convinced that the exchange rate will remain on today’s 27 CZK/EUR even after the ČNB has stopped its interventions. The authors of the survey have nevertheless pointed out that no definitive conclusions could be drawn from the preliminary results.

The Confederation has been represented at the meeting by its president Jaroslav Hanák, vice-president František Chaloupecký and director general Dagmar Kuchtová. The ČNB has been represented by its governor Miroslav Singer, vice-governor Mojmír Hampl and several ČNB’s board members.

On the agenda of the meeting, beside the evaluation of the economic policy of the Czech government done from the Confederation‘s expert point of view, has been the evaluation of the macroeconomic situation and its perspectives and development in the corporate sector which has been presented by the ČNB monetary department head Mojmír Hampl.