Wednesday May 25, 2022

The koruna can strengthen against the euro. It will be cheaper for me this year

If nothing out of the ordinary happens in the economy, the Czech koruna should strengthen the euro this year, according to the economist. For the Czechs, for example, this would mean that it would be allowed to spend abroad significantly cheaper than last year. It would be more appropriate to buy euros.

According to economists, such a scene would occur in two cases, which at first glance contradict each other: either the world, and thus the Czech Republic, will recover and start a more stable growth, or again there will be a relatively hard decline and the recovery of the economy will be W .

are both scne against each other? Not in the logic of the financial market, which fundamentally affects the exchange rate of the koruna against the euro, and thus the purchasing services abroad. If the economy is the worst behind, analysts expect a slight strengthening of the koruna, which would lead to cheaper purchases abroad.
And if the crisis reigns in the world, large investors may get the impression that the Czech Republic is relatively safe and will invest in the crown. That would send her that way.

“It doesn’t seem very rational, but it’s possible,” confirmed Jan Frait, an expert at the Czech National Bank on risk. Her scene in the event of a return to recession with such a development of sweat. The sending of the koruna would be only temporary, it would probably only last a hundred years, and and investors would see it, the koruna would weaken again.

The risk is Greece

even if they are going on holiday, they should not go to such a scene, because their return to reality could then be rough, not usually. A positive fluctuation of the koruna would lead to a deepening recession in the Czech Republic, because it would increase the price of domestic goods abroad, and thus gave it to the sown car.

On the contrary, the koruna weakened rapidly and the exchange rate of 28 K per euro, which are the values ​​from the winter of the winter, when the financial crisis peaked, could arise in the event of growing problems. If the creditor sees that the situation in the country is not improving and their pensions will not be safe, their nervousness will spread to the economy of the European Union, especially the Czech Republic.

“In the short term, the koruna’s problems may fall on the koruna in the form of pirka risks. The biggest risk is the threat during the spring auctions, when the Czech market needs to pay 20 billion euros in debt during April and May, and at the same time the Czech elections are approaching, ”expected Jan Bure, chief economist at Potovn spoitelny.

Match: mrn gym koruna vi euro

The most likely scene for this year, at which most economists agree so far, is a slight strengthening of the koruna against the euro. So if nothing out of the ordinary happens in the economy, they should have a bloated wallet abroad not last year.

For example, Patria sees the koruna’s exchange rate at the end of the year at 25.70 K vi euro, practically the same as Komern banka’s forecast. SOB cl rate even at 23.80 and with a slightly stable strength and NB.

Estimates are based on the assumption that the Czech economy will grow at least a little, I should go a little round. “The koruna will be stronger this year thanks to the improved performance of the whole economy and better governance. However, it will be strengthened by weak episodes, ”said Martin Lobotka from esk spoitelna, who expected a rate of 24.20 K per euro at the end of the year.

There is a lot of agreement around your dollar exchange rate. This is compounded by the problems of the euro area due to the Czech Republic, but at the same time it is unconvinced by the growth of the American economy. Analysts therefore do not agree with him on future developments. This year, for the Czechs, the desire for dollars will fly in a duel of tkch weights: the euro and the dollar. The euro will be weaker than the dollar, and the koruna will be weaker against it.

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