The Czech koruna (CZK) is considered to be an exotic currency in the Forex market.
The Czech Republic is the world’s forty-fourth largest economy.
Does Your Economy Run a Trade Surplus or a Trade Deficit?
The Czech Republic runs a trade deficit of $5.956 billion, giving the country a ranking of 171 out of the 190 countries tracked by the CIA in The World Factbook.
What Does Your Economy Export?
The Czech Republic exports machinery and transportation equipment, raw materials, fuel, and chemicals.
According to the World Trade Organization (WTO), the Czech Republic exports $113.4 billion in goods and merchandise compared to only $20.3 billion in commercial services. The WTO breaks down those exports as follows:
Goods and Merchandise
- Agricultural products: 6.1 percent
- Fuels and mining products: 5.3 percent
- Manufactures: 88.3 percent
Commercial Services
- Transportation: 26.9 percent
- Travel: 31.9 percent
- Other commercial services: 41.1 percent
To Whom Does Your Economy Export?
The WTO ranks the following countries as the top destinations for exports from the Czech Republic:
- European Union: 84.7 percent
- Russian Federation: 2.3 percent
- Switzerland: 1.6 percent
- United States: 1.6 percent
- China: 0.7 percent
What Does Your Economy Import?
The Czech Republic imports machinery and transportation equipment, raw materials, fuel, and chemicals.
According to the WTO, the country imports $105.2 billion in goods and merchandise compared to only $18.9 billion in commercial services. The WTO breaks down those imports as follows:
Goods and. Merchandise
- Agricultural products: 7.7 percent
- Fuels and mining products: 12.3 percent
- Manufactures: 79.8 percent
Commercial Services
- Transportation: 21.2 percent
- Travel: 21.6 percent
- Other commercial services: 57.2 percent
From Whom Does Your Economy Import?
The WTO ranks the following countries as the top sources of imports to the Czech Republic:
- European Union: 66.9 percent
- China: 10.1 percent
- Russian Federation: 5.1 percent
- Japan: 3.1 percent
- United States: 2.1 percent
Do You Have an Attractive Government Debt Market?
The Czech Republic currently has a Moody’s rating of Aal. It received this latest rating on May 24, 2006. This most recent rating was an upgrade from the Al rating that the country had held previously. This is a positive sign for the country’s government debt market.
Do You Have an Attractive Equities Market?
The Czech Republic has an attractive equities market, but it is not very large. It is the fifty-third largest equities market in the world, with a total market value of $52.69 billion.
Tell Me About Your Central Bank
According to the Czech Constitution and the Act on the Czech National Bank (CNB), the CNB’s primary objective is to maintain price stability. Without prejudice to its primary objective, the CNB also supports the general economic policies of the government. The CNB achieves its primary objective, price stability, by making changes in key interest rates. The interest-rate decisions of the CNB Bank Board are based on the current macroeconomic forecast and an assessment of the risks to its fulfillment. Upon the Czech Republic’s entry into the euro area, the CNB will cede its independent monetary policy to the European Central Bank.
The Czech National Bank has foreign currency reserves of $39,284 million and gold deposits of $584 millio.
Do You Have an Overinvolved Government
The Czech Republic is not known for being an aggressive currency manipulator.
What Economic Announcements Are Important to You?
When you are watching the economic announcements coming out of the Czech Republic, make sure that you keep your eye on the following:
- Interest rates
- Employment
- Inflation
- Gross domestic product (GDP)
- Trade balance
Are You a Safe-Haven Currency?
No, the Czech koruna is not considered to be a safe-haven currency.
How Can I Trade You?
You can trade the Czech koruna using either of the following:
- Spot Forex
- Forex futures
