Central bank made biggest intervention on currency markets in January

The Czech National Bank made its biggest ever intervention on the currency markets in one month in January, according to figures released on Tuesday. The central bank spent around CZK 391 billion buying euros in January in a bid to keep the Czech crown down to around 27 to the common European currency. The policy of keeping the crown weak was launched in late 2013. Czech National Bank officials say it will be discontinued this year. Analysts say anticipation of the change has made the crown more subject to currency speculation. The divisive intervention policy has cost the CNB CZK 1.3 trillion to date.

Author: Ian Willoughby