Czech officials in talks on crown strength
The Czech central bank is in talks with the country's finance ministry on fighting the impact of the crown currency's strength, a spokesman said on Tuesday.
The approach would be similar to what the central bank and the government had done in the past with proceeds from the sale of the former Czech telephone monopoly, spokesman Pavel Zubek said.
He said the finance ministry seemed willing to cooperate but the timing of when the plan could be agreed would depend on whether minister Miroslav Kalousek wants the entire cabinet to consider it.
Zubek confirmed comments on the matter in daily E15 by central bank Vice-Governor Mojmir Hapl.
“I can confirm that there are negotiations on an agreement between the Czech National Bank and the Finance Ministry on how to fight the consequences of the fast appreciating crown,” the E15 quoted Hampl as saying.
It also wanted the government to refrain from issuing eurobonds, it said.
The crown has jumped by 10% to the euro over the past year, in local currency terms, on strong economic growth, exports, and a narrowing negative interest rate differential to the euro zone. (finance.cz)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.