19 Feb 2015
Czech President successfully intervenes in favor of CZK – KBC
FXStreet (Barcelona) - The KBC Bank Research Team explain that the Czech President has succeeded in making his second outstanding verbal intervention in favour of the koruna this year.
Key Quotes
“Put simply, the Czech President, whose powers include appointing the entire CNB Bank Board, said yesterday that next time he would only appoint such people to the central bank leadership who would not experiment (with the policy of the targeted weakening of the koruna) and who would support the country’s accession to the euro area.”
“…from the purely practical perspective, President Zeman has succeeded in making a very nice good verbal intervention in favour of the koruna.”
“Given that the intervention floor of the EUR/CZK is already near while the euro area is far, we believe the next koruna is rather to weaker levels.”
“Recall that the fact that the CZK is at its strongest levels in for the last one and a quarter years will not make happy still independent CNB Board members.”
“In this respect it is worth noting the latest Minutes of the CNB, where the central bank states that it will watch the koruna while monitoring deflationary pressures.”
Key Quotes
“Put simply, the Czech President, whose powers include appointing the entire CNB Bank Board, said yesterday that next time he would only appoint such people to the central bank leadership who would not experiment (with the policy of the targeted weakening of the koruna) and who would support the country’s accession to the euro area.”
“…from the purely practical perspective, President Zeman has succeeded in making a very nice good verbal intervention in favour of the koruna.”
“Given that the intervention floor of the EUR/CZK is already near while the euro area is far, we believe the next koruna is rather to weaker levels.”
“Recall that the fact that the CZK is at its strongest levels in for the last one and a quarter years will not make happy still independent CNB Board members.”
“In this respect it is worth noting the latest Minutes of the CNB, where the central bank states that it will watch the koruna while monitoring deflationary pressures.”