Reim’s weak koruna may not end in 2016, admitted Hampl from the NB

The vice-governor of the Czech National Bank, Mojmr Hampl, admitted that the regime of a weak koruna caused by interventions could last, according to them. The bank was considering exiting in the second half of 2016. In recent days, the central bank has been intervening in the intervention of Miloe Zeman, also given that the euro was close to 27 crowns.

After past experience, it is important to think about whether we should keep the exchange rate a bit by something, not to worry about the exact time exit, Hampl told Bloomberg.

A similar determination to arm the intervention regime was published in a blog on his blog only by Vladimir Tomk. He wrote that the strengthening of the koruna against the euro to the level of 27 crowns was also close to the reaction of the NB. In the intervention regime, which began in November 2013, the central bank is trying to keep the exchange rate above this limit. (more about Tomka here)

This was commented on by Deloitte chief economist David Marek, as a verbal intervention aimed at removing traders in the foreign exchange markets from trying to bring the koruna’s exchange rate against the euro equal to 27 crowns. This is understandable, and it may be some of the pre-arranged communication, he noted that verbal interventions are much cheaper than the actual range.

Vy vnosy lkaj k investicm v R

At the moment when the price of 27.00 should light up on the Bloomberg and Reuters displays, traders in the NB will immediately send trading orders to other traders on the foreign exchange market and will sell to the Czech currency, Marek added.

The koruna against the dollar has long been between 27 and 28 koruna after interventions, and the bag against the euro has been strengthening in recent weeks. According to Patria Online, it is now 27.29 crowns. There are several reasons for strengthening the school. Bond yields in the Czech Republic are higher in Western Europe (somewhere they are also questionable), especially for investments in the Czech Republic. It plays a bag against the exchange rate of the crown. Speculation that they may change in the NB’s bank board in the middle of the first year may also play a role. In the middle of the year, among others, Mandtguverner Singer.

Mojmr Hampl variously rejected Zeman’s critique of banking policy as irrational. According to him, the koruna strengthened not because of Zeman’s years that the NB should leave the intervention regime, but rather because of the expected impact of the massive support of the economy by the European Central Bank.

According to Hampl, Zeman’s years in the Czech Republic are very important because they are inconsistent, irrational and illogical. I consider the impact of the ECB’s move on the koruna to be a greater risk, because thorns have a major impact on a small and open economy. But that’s the reason for us a course bundle and for we promised to arm it under all circumstances, he added for Bloomberg.