20th May 2013

Chamber of Deputies passed the amendment of the Act on Czech National Bank

The Chamber of Deputies passed the amendment of the Act on the Czech National Bank (zákon o České národní bance) in the first reading at its last session on 15 May. The amendment reflects some comments that have been raised by the ECB and European Commission. The Bill stipulates institutional independence of the CNB by preventing from political influence. Besides that, the CNB should promote monetary and fiscal stability of the Czech Republic, and goals of the EU (see here). The Bill also regulates the ownership of the foreign reserves exchange as they should become possession of the CNB.
The Chamber also passed the amendment that was proposed by the Committee on Budget extending the possibility for the CNB to act on the behalf of the Ministry of Finance. In such cases, the CNB may deal in investments tools (securities, etc). The trade activities of the CNB on the behalf of the Ministry of Finance are, however, the object of negotiation and a consecutive agreement between the CNB and the Ministry.
The discussion regarding the foreign exchange reserves on the floor of the Chamber has been raised. Some deputies asked to keep the current state (reserves as possession of the state in administration of the CNB). However, the Chamber of Deputies supported the previous Governmental version according to which the reserves should be possession of the CNB. Thus it could prevent the economic policy from unadvised intervention of politician in economic matters via the CNB.
For further information including the discussion, click here.

Members of the American Chamber of Commerce in the Czech Republic