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Business NewsCrown hits five-month low due to floods
The Czech crown depreciated in the past few days due to concerns about the effects of the disastrous floods in the Czech Republic. After several week of steady appreciation, the crown's exchange rate fell...
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Current AffairsIs strong crown influencing tourism in the Czech Republic?
The Czech currency has reached record levels over the past few weeks, which not only poses problems to Czech exporters, but it also means that everything is more expensive for foreign tourists arriving in the Czech Republic on holiday. So is the strong crown putting off foreign tourists?
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Current AffairsCentral Bank cuts interest rates in response to strengthening crown
On Thursday, the Czech National Bank's board made money cheaper by reducing interest rates by three-quarters of a percentage point. This measure was welcomed by the Finance Ministry, as the cut is expected to curb the recent rise of the crown and come to the rescue of exporters who have been under enormous pressure to reduce costs. Although a cut in interest rates was expected, most economic analysts predicted they would be cut by half a percentage point at most. Dita Asiedu spoke to economic analyst David Marek from Patria Finance to find out what this move meant for the business community and in what way it would affect the average Czech:
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Business NewsCrown's constant firming may endanger economic growth
The Czech National Bank on Wednesday released a report from its board meeting at the end of June in which it sees the constant appreciation of the crown as a factor that could cause changes in the structure of the economy and negatively affect economic growth. The crown is also one of the main factors behind the current fall of inflation below the central bank's target.
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Current Affairs Czechs sick of small change?
Is the Czech Republic running out of small change? Here's a quick maths lesson: one Czech crown is worth around 3 US cents. Each crown is divided into 100 hellers, and the Czech National Bank issues 10,20 and 50 heller coins. But a 10 heller coin - worth about a third of a cent - is to all intents and purposes useless. And as Dita Asiedu reports now, more and more people are discarding them and shops are beginning to run out.
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Business NewsCrown still very strong
The Czech crown continued strengthening to record highs last week and on Thursday broke the psychological level of 30 crowns per euro, setting a new record high at 29.9 crowns to the euro. The Central Bank intervened against the currency, sending it back to over 30 crowns. Some experts say the crown could reach as high as 29.50 over the next few days unless the Central Bank intervenes again. Finance Minister Jiri Rusnok said that intervention was justified because the rate of the crown's strengthening does not correspond to economic development.
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