Tuesday May 24, 2022

The koruna jumps strengthened against the dollar

Whoever bought dollars in a bird didn’t go crazy. The koruna strengthened the US currency by more than 50 halls in two days to 18.26 K. The Czech currency strengthened mainly against the euro.

Behind the rising exchange rate of the koruna, on the one hand, is good from the euro area at first, and Jean-Claude Trichet’s statement from the European Central Bank on the increase in annual rates. That would also mean a one-year deal for the euro. The European currency first strengthened against the dollar, which weakened even the crowns.

According to analysts at Next Finance Markty ichtaov, however, the koruna’s strengthening should not be long-lasting. “Probably in the horizon of the first week, the exchange rate of the crown should return to the level where it was about seven days ago,” she said.

The euro was helped by the fact that the indebtedness of the euro area (Portugal, Spain and Italy) sold their bonds without any problems, which suggests that they could manage their problems even without financial assistance.

Due to the problems of the euro, the Czech Republic is not preparing to adopt the euro yet. Prime Minister Petr Neas recently stated that the country will do so in the moment when it meets the Maastricht criteria, the euro area will be stable and the new currency will be suitable without hitting the crown. “We cannot agree with such an opinion,” ichtaov added.

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