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Strong CZK is partly due to FX interventions (sell EUR, buy CZK) done by the central bank (https://think.ing.com/articles/cnb-fx-intervention-september-was-seco
by mvac 4y ago
Strong CZK is partly due to FX interventions (sell EUR, buy CZK) done by the central bank (https://think.ing.com/articles/cnb-fx-intervention-september-was-second-most-expensive-month/ https://think.ing.com/articles/cnb-fx-intervention-september...).
The idea is that interventions makes CZK stronger, which makes imports cheaper (think gas etc.. bought in EUR), which lowers inflation.
- _Tev 4y agoWell ČNB could afford to easily do this thanks to money printing (and buying up EUR) it did 2013-2017. So still an argument for independent central bank with its own currency.