The koruna continues to weaken against the euro, closing at 23.71 CZK/EUR

The koruna continues to weaken against the euro, closing at 23.71 CZK/EUR


Money, euro, Czech crown, banknotes – illustration photo.

Prague – Even at the beginning of the new week, the koruna continued to weaken against the euro. Around 17:00 it traded at 23.71 CZK/EUR, losing nine pennies compared to Friday's close. Against the dollar, the Czech currency strengthened by a penny and closed at 22.09 CZK/USD. This follows from data from the Patria Online server. Since the beginning of March, the koruna has already lost 40 halers against the euro. The Prague Stock Exchange also continues to decline.

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Concerns about the stability of the banking system after the closure of three American banks also contributed to the negative sentiment on world markets. “Liquidity problems only concern American banks for the time being, but we also see growing nervousness among our domestic clients, who are trying to get information on whether they could also be affected by this situation,” noted Purple Trading analyst Jaroslav Tupý.

< p>The koruna has been weakening since the beginning of March, when it improved its more than fourteen-year high against the euro and reached 23.38 CZK/EUR. The last time it was stronger was in July 2008, when the exchange rate was just below 23 CZK/EUR.

The Prague Stock Exchange PX index weakened by 2.18 percent to 1346.18 points on Monday. It closed the lowest since February 1. Banks in particular dragged him down. Activity on the market was high, the total volume of transactions exceeded one billion crowns. It follows from the data of the stock exchange website.

“Bank stocks at the start of the week again faced a wave of selling related to jitters in financial stocks in foreign markets, triggered by the collapse of US regional bank SVB Financial,” said broker Wood & Company Vladimír Vávra.

The worst performers on the Prague market were the securities of Erste Bank, which fell by 4.55 percent to 772.80 crowns. Komerční banka wrote off 3.9 percent to 703 crowns. Moneta Money Bank then declined by 1.07 percent to CZK 83.40 and insurance company VIG by 2.46 percent to CZK 595.

According to the analyst of Komerční banka Bohumil Trampota, the situation now is different from the crisis in 2008. “The banks are in a different, much better condition than in the mentioned year. In addition, the regulators immediately introduced a program to provide assistance, where banks will be able to borrow cheaply to satisfy his clients,” he said. Therefore, he would not worry about a crisis or transferring problems to others. “However, the truth is that the stock markets got nervous,” he added.

In Prague on Monday, most stocks ended in the red, with only a few exceptions. Shares of the pharmacy chain Pilulka recorded a profit, adding 1.56 percent to 650 crowns. Tobacco company Philip Morris CR grew by 0.23 percent to 17,460 crowns. The securities of the energy company ČEZ also avoided losses when they stagnated at 1,000 crowns.

Czech currency exchange rate:


Monday around 5pm







Source: Patria Online

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