The Czech koruna has experienced a significant depreciation, reaching its lowest value against the euro since the spring of 2022. On Friday, the currency plummeted to 24.97 against the euro, marking a loss of 14 hellers in a single day and reflecting the highest exchange rate since May 2022.

The decline against the US dollar was even more pronounced, with a loss of 18 hellers, resulting in a value of 23.11 koruna per dollar. Data sourced from the Patria Online server underscores the magnitude of the koruna’s depreciation against major currencies.

The steep decline against the dollar is notable, considering that in July of the previous year, the exchange rate stood just above 21 koruna per dollar. By the end of November, it had surged to approximately 22 koruna per dollar, representing an increase of more than one koruna within a short span.

While the Czech currency showed signs of strength against the euro in the second half of 2022, reaching its peak exchange rate of 23.23 koruna per euro in April 2023, it has since experienced a downward trajectory. By the end of November last year, the exchange rate had climbed to 24.26 CZK/EUR, marking a significant increase of 71 hellers to the current 24.97 within two months.

The last time the koruna displayed weaker performance against the euro was at the beginning of May 2022, when it traded at 25 koruna per euro. The recent depreciation underscores the currency’s vulnerability to external economic factors and highlights the challenges faced by the Czech economy in maintaining exchange rate stability amidst global economic fluctuations.

Article by Prague Forum