Czech National Bank makes second highest monthly forex intervention in August

The Czech National Bank announced Friday the volume of its foreign currency interventions in August aimed at sustaining its low crown policy. The bank said it spent 28.6 billion crowns buying euros. That’s the second biggest monthly total for intervention this year, exceeded only by the 58.2 billion crown total for January. The bank is aiming to keep the crown at a rate of 27 crowns to the euro or lower under a policy started in November 2013. The rate of intervention is a sign of what sort of upward pressures on the crown the bank is forced to resist.

Author: Chris Johnstone