FX market is a global market with a very high liquidity and trade volumes. This global market is open 24/7 except for the weekends and a few selected public holidays. The interbank trades are done through electronic systems EBS and Thomson Reuters Dealing. FX market is decentralized, which means there is no central exchange and the trades are realized on the over-the-counter (OTC) basis. Komerční banka enables access to this market through dealing and KB eTrading electronic platform.
The quotes are derived from the current rates on the interbank market. The bid-offer spread represents the spread for a typical client trade.
Exchange rates list states the rates at which it is possible to buy or sell foreign currencies for Czech Crowns at any KB branch in cash (banknotes) or cashless transactions.
5/17/2022 4:46 PM
Upcoming
changes in the CNB board are likely to induce a dovish shift in Czech monetary
policy communication. We expect a final 75bp hike in this tightening cycle to
be delivered by the CNB at the upcoming June meeting, with the risk of an even
larger increase. The new governor Michl has indicated that he will likely apply
a wait-and-see policy afterwards, which could mean the risk of further
de-anchoring inflation expectations. As a result, we think that domestic rates
are set to remain elevated on the back of an increase in the country risk
premium. CZK should thus remain weakened around EUR/CZK 25 in the coming
months, despite support from CNB’s FX interventions and the wide interest rate
differential.
Other commentaries
- 5/17/2022 4:46 PMAd-hoc reports: Abrupt end to the CNB’s hawkishness?
- 5/6/2022 12:37 PMAd-hoc reports: CNB forecast suggests rates should be hiked to above 8%
- 4/26/2022 4:40 PMCzech Economic Outlook: The Bogey of Stagflation
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