The Czech Koruna is the most rapidly appreciating currency in 2017

Post date: Mar 27, 2018 6:15:45 AM

The Czech Koruna is the most rapidly appreciating currency in 2017

The Czech Koruna, together with the Polish Zloty, are the most rapidly appreciating currencies in the world for the year 2017. The Dollar exchange rate, on the other hand, has dropped against the six leading international currencies by around 9% in 2017.

The intervention of the central Czech Bank, in other words, artificially keeping the exchange rate at 27 Czech Korunas per Euro, ended in April 2017, which led to the appreciation of the currency value by 5% versus the Euro and by 17.5% versus the dollar – according to the data of Hospodářské noviny as of 2017. The Chief Economist at the ING Bank claims that the Czech Koruna will continue to strengthen, but at a rate slower than its appreciation rate in 2017.

The appreciation of the Czech currency has led to a growth in the GDP, a growth in worker wages, and also to a rise in an inflation. The Czech Central Bank has responded to this by raising the interest rates. Most analysts project an additional growth of the GDP, and a tightening of the Czech Republic economic policy in 2018. The projected exchange rate in 2018 will be around 25 Czech Korunas per Euro and will probably favor the Czech Koruna even more by the end of 2018.

The second success story of this year was the Polish Zloty which has appreciated by 16.6% versus the dollar and by 4.6% versus the Euro. In other words, it is currently ranked second after the Czech Koruna in terms of value appreciation. Currently, the Zloty – Euro exchange rate is 4.21 Zloty to Euro, representing a 1.5% appreciation per annum (according to the Reuters news agency).

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