Wednesday May 25, 2022

Fear of recession weakens the crown. When it comes, healthy departures and imports

esk mna weakens vi both main mnm. This year, for the first time, it jumped to the 25 K level against the euro for the first time, and this month the paint was 18.6 K on the dollar this afternoon. If the recession really works, they can also prepare for expensive travel and shopping abroad. For example, gasoline could make the bag cheaper.

The koruna, which fluctuated between 24.00 and 24.60 K per euro this year, has now taken a new turn, mainly due to Europe’s debt problems. ” seEvrop will avoid it, ”says Next Finance analyst Martin Prokop.

If a recession occurs, it will have a long-term effect on the exchange rate of the Czech currency in the main currency. According to Prokop, the koruna will weaken the euro in the next year and to 25.50 crowns per euro and will fall below 25 K per year. From this year’s average exchange rate of 17.27 K per dollar, according to Prokop, the koruna will reach 1.40 K per year.

Departures and foreign purchases podra

They can thus be prepared for the fact that all purchases abroad, in addition to electronics, are allowed. The downhill bag due to the great competition in the market and its published catalog with winter offerings and in the first year.

“If the crown were to be weakened for a long time, the descents would certainly be more expensive, but in the five summer seasons. The travel agencies are against the exchange rate and would not reflect such costs until the winter offer, ”explains Jan Pape, the Association of Czech Travel Agencies.

Most travelers have published catalogs with prices for winter holidays. According to Papee, I can only change those when the koruna’s exchange rate has deviated by ten percent. If prices change as the currency changes, the customer should first withdraw from the purchase agreement. “In tourism, however, there is a lot of competition, so even in the event of a healthy downhill run, travel agencies will not have a significant effect of the weakened crown in the price of the downhill run,” said Pape.

Thus, things imported from abroad will be more healthy. This is mostly borne by companies that import iv. Low domestic demand will slow down during the recession, and importers will have to reflect in their profits both the cost of buying expensive goods and weakened income from them.

The weak koruna will heat up the export, but they cannot rejoice

On the contrary, under otherwise unchanged conditions, exporters could be happy with the weakened crown. Due to the fact that the sale of goods abroad for me, it will receive more pensions if the koruna depreciates. The recession is very likely to affect the whole of Europe, which will weaken the demand for their goods. They can’t afford impressions.

“Exports will be better than importers. There will be only one negative impact, where importers will have to, in addition to weakened demand from elites, the impact of the weakened koruna, ”notes analyst Prokop.

Gasoline is not cheap for a short time, but in a recession, yes

idii sepchodu recesebt sp you don’t have to. Although the prices of domestic fuels are affected by the exchange rate of the koruna against the dollar, oil is buying on foreign markets, the recession is dampening demand, and so oil prices unfortunately have a tendency to fall.

“Oil is a cyclical commodity that is getting cheaper during an economic recession and is becoming more expensive during a period of growth. At the moment, however, the price of oil is relatively high, as if, unlike the stock market, it has not responded to fears of a crisis. If the crisis occurs, oil under otherwise unchanged conditions will reduce the impact of the weakened koruna. Fuel prices could thus fall in the future, ”to Prokop.

The bag will definitely not apply in the short term. According to Patria Online, the koruna’s exchange rate between the dollar and 14:55 reached 18.60 K per dollar. Vera, around eight o’clock in the evening, kept at the level of 18 K. Such a weakened Czech currency affected at least the price of gasoline in the first week.

“Although the price of oil is falling, the Czech koruna has been weakening sharply for a long time, so fuel prices will not fall in the coming week.

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