CZK moves to managed float, further appreciation likely - Capital Economics
Emerging Europe Economics

CZK moves to managed float, further appreciation likely

Emerging Europe Economics Update
Written by Capital Economics Economist

Despite what looks like heavy FX intervention by the Czech National Bank upon the exit from the koruna ceiling policy earlier today, comments from Governor Rusnok suggest that the Bank will tolerate sizeable appreciation of the currency. We are sticking with our view that the koruna will settle at around 25.5/€ by year-end – a 4% rise from its current rate.