Central bank launches interventions on foreign exchange markets over crown depreciation
The National Bank Board has decided to launch interventions on foreign exchange markets due to the significant depreciation of the crown in recent days. The move is to offset a longer-term depreciation of the crown at a time of high inflation. Sales from the proceeds from foreign exchange reserves will be suspended for the duration of the interventions.
The crown weakened against both major world currencies following the appointment of Aleš Michl to the post of governor. Michl opposes the current interest rate hike cycle.