Saturday May 21, 2022

The crown is weakening, healthy holiday

A year ago, exports built a strong crown, so their voices inconspicuously died down. Despite the positive news about the state of the economy, the koruna’s exchange rate against the euro fell to nine days on Thursday, 28.56 K. For the Czech company, which is mainly developing, it is good at first.

Good news for exporters,

Give me more. Mostly they expected that the euro would be cheaper this year. On the contrary, imports become more expensive and, for example, allowed abroad.

“Of course it’s nice, but it doesn’t affect us much. The koruna has been strengthening for a long time and this is just a small swing, ”said Ji Grund from the Association of the Export Republic of the Czech Republic. “It shows that the exchange rate affects more traders with me, and not just the results of the economy,” he said.

Businesses stand for a strong crown for a long time. When it reached the level of 28 crowns in a run, for example, Auto Detlef Wittig declared that his country had not responded. “It simply follows that the crown is overvalued. The changes in the economy continue. There are certainly speculative reasons behind this, “he said at the time.

After previous years, when the koruna strengthened sharply, this year companies have been falling with further exchange rate growth.

The demand pushes up

“We had a rough calculation of the cost of 28 crowns, we are also satisfied with this course. But in terms of twelve and eighteen months, we prefer to go with the euro for 27 crowns, ”said Vclav Novk, Chairman of the Board of Thermolast.

Just a year ago, the euro cost nineteen hal. The dollar, on the other hand, was not a crown more than a year ago. On the course, only the traveler will send mc to dollar areas, for example to Egypt.

According to analysts, the koruna’s exchange rate will not depend only on the growth of the economy, but also on what is behind the growth. In the case of the Czech Republic, it was a large shift in domestic demand, which pushes the volume of imports up.

“I am weakening due to the growing volume of business, where investors are borrowing the Czech currency to pay for their investments in countries with a one-year rate,” said Pavel Sobek from HVB Bank.

that the euro will fall to a maximum of 28.40 crowns by the end of the year.

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