Finance Ministry and central bank debating how to curb strengthening crown

The Czech National Bank and the Finance Ministry are debating how to fight against the impacts of the fast-firming Czech crown," the central bank’s vice-governor Mojmír Hampl told the online business daily E15 on Tuesday. The Czech National Bank wants to freeze the government’s privatisation proceeds in order to reduce the inflow of money into the economy. The money that the state would obtain for its stakes in Czech Airlines, the Czech post office Česká pošta and the brewery Budějovický Budvar would be deposited on a special account. It would not be converted into crowns and would “wait” for the Czech Republic's euro-zone entry. The demand for the Czech currency, which leads to a strengthening of the crown, would therefore not increase further. The central bank also wants the government to fight the firming Czech currency by not issuing euro-bonds.