The Czech National Bank has been forced to bring out its heavy weapon, in the form of currency interventions, in the last months to keep the crown below its ceiling. But lower inflationary pressure than expected now means that the speculators who bought up the currency on the hope of quick gains now appear to be quitting their crown positions. That means the pressure could be off the crown and the bank for the forseeable future.
The Třinecké železárny steelworks has won a lucrative contract worth 15 billion crowns for a project of railway route construction in Azerbaijan, the company’s CEO Jan Czudek revealed on Wednesday after a visit by the Czech head-of-state Miloš Zeman. The president reportedly helped seal the deal during a recent visit to the former Soviet country.
Azerbaijan is one of around two dozen countries of ‘interest’ where the Czech Republic believes it should make an effort to boost its export performance. Head of state Miloš Zeman prioritized that goal with a recently concluded official visit but oil prices will probably have a substantial impact on how many contracts will result.
The volume of Czech exports to Russia took a slide in 2015 as a result of the sanctions against Russia and the country’s own retaliatory measures. According to figures released by the Czech Trade and Industry Ministry Czech exports to Russia fell by 32.8 percent year-on- year to 45.2 billion crowns in the first seven months of this year. Due to a faster drop in Czech exports than imports, the deficit in trade with Russia increased by 7.5 billion to 18.5 billion crowns.