US Dollar / Czech Koruna - USD/CZK

The national currency of Czech Republic since 1993, the Czech Koruna (CZK) was at the beginning (the dissolution of Czechoslovakia as a “socialist” republic under the soviet influence) defined at parity with the Slovakian Koruna, but if the Slovakian Koruna disappeared in 2009 to be replaced by the Euro, the Czech Koruna is still the national currency because Czech Republic (a member of the European Union since 2004 like Slovakia) hasn’t joint yet the ERM II (Exchange rate Mechanism II), previous to the integration of the Euro area.

Freely floating since 1997, the Czech Koruna is the subject of an intense trading activity (until $5 billion in volume each day); an activity that is as well on the EUR/CZK cross as on the USD/CZK cross.

With an exchange value USD/CZK = 30 by the end of 2004, the USD/CZK cross maintained between USD/CZK = 25 and USD/CZK= 30 until January 2006.

From the date, its fluctuations seemed to be the same as the EUR/CzK cross ones, and the Czech Koruna appreciated for a long period (until the Summer of 2008) against the American Dollar.

The disinflation observed at this moment in the country and the success of the Czech economy have no role in this appreciation of the CZK.

On the Forex, the USD/CZK cross had an exchange value equal to 21 from June 2006, and we had USD/CZK = 15 two years later.

In two years and a half, the Czech Koruna appreciated by 50% against the dollar, an appreciation even more accentuated as the Euro also won ground on the American currency during the same period.

In the context of the financial and stock-exchange crisis which got worse in the Fall of 2008, the dollar quickly re-appreciated against the Czech Koruna, and we had USD/CZK = 22 in February 2009.

A clear adjustment happened then in favor of the Czech Koruna (the movement is again parallel to the euro’s one against the dollar, and it can be amplified by this last one) and the cross was at USD/CZK = 17.167 by mid-November 2009.