6th March 2017

Central Bank Governor for Bloomberg: Short-term fluctuations of koruna exchange rate after exit will not trouble us very much

The Czech National Bank is ready for the market to turn “quite turbulent” after it removes its Swiss-style regime limiting currency appreciation, a decision that now appears most likely around mid-2017, Governor Jiri Rusnok said in an interview for Bloomberg. The monetary authority won’t be overly concerned about short-term swings, which would be natural before the market returns to “normal conditions,” he said.

“If we were to pledge to completely mitigate koruna swings right after the exit, then, effectively, we wouldn’t be leaving” the regime,” Rusnok said. “What we’re saying is that there can be high volatility, and that it will be a period when those speculating on the koruna should be a little afraid, more than we need to be. Our pain threshold will be quite high.” 

Read the interview (in English).

Members of the American Chamber of Commerce in the Czech Republic