The Czech koruna is currently depreciating

The Czech koruna is losing on the monetary markets. According to Komerční banka´s analytical team, recent sales are attributable to both higher risk aversion related to further escalation of the euro debt crisis and to the rapidly worsening outlook of eurozone´s and Czech Republic´s economic growth for 2012. The Financial Times also reported about the general withdrawal of investors from CZK-hedging of their deals in the CEE region.

Raiffeisenbank´s economic research head Pavel Mertlík has stated in an interview for daily Lidové noviny that the current depreciation of the Czech currency will be temporary. Mr. Mertlík has noted that the Czech korunas was the only Eastern European currency that resisted negative influences in the summer and is currently compensating the time loss. He says that the Czech koruna might depreciate up to 50 halers temporarily due to the debt crisis. In case of catastrophes in Europe, the currency may lose up to CZK 1.

(Source: Daily News Czech AM, www.cianews.eu)