At its extraordinary meeting on 6 April 2017, the Bank Board of the Czech National Bank decided to discontinue the use of the exchange rate as an additional instrument for easing the monetary conditions. By taking this step, the CNB returned to the conventional monetary policy regime, in which interest rates are the main instrument. The koruna exchange may thus fluctuate in either direction depending on demand and supply. However, the CNB stands ready to use its instruments to mitigate potential excessive exchange rate fluctuations.
More on the issue in Czech by ihned.cz.
5th February 2018