With summer vacations approaching, analysts suggest that it’s a good time to exchange Czech Koruna for Euros or other foreign currencies. Thanks to the Czech National Bank (ČNB), the Koruna exchange rate significantly strengthened in May, gaining almost five percent against the dollar.
On Friday morning, the Koruna opened against the Euro with an exchange rate of around 24.70 CZK/EUR, marking its most robust value in the past four months. Interestingly, just a month ago, the exchange rate differed by 50 hellers, with the Czech currency being traded at 25.30 CZK/EUR.
The Koruna has also improved significantly against the US dollar over the past month, specifically by 90 hellers, moving from around 23.80 CZK/USD to Friday’s 22.70 CZK/USD. Analyst Tomáš Volf of Citfin company stated that the Koruna has been outperforming other currencies recently, with no signs of a quick fall.
According to Volf, Czechs have a great opportunity to buy foreign currency for their vacations at a very decent rate. However, he added that we would not reach last year’s value when one euro could be punctured for 23.70 CZK/EUR.
The Bank Board of ČNB triggered the strengthening of the Koruna at the beginning of May, which decided to lower the introductory interest rate by half a percentage point to 5.25 percent after its monetary meeting. The rate of decrease of the ČNB rates in the coming months will be crucial in determining the future levels of the Koruna.
In conclusion, the Czech Koruna has shown significant strength recently, making it suitable for Czech residents to consider exchanging their currency for summer vacations. However, future developments will largely depend on the actions of the ČNB.