Welcome to Pure FX's latest outlook for the pound to Czech koruna interbank exchange rate.
This tells you what could happen to the pound to Czech koruna interbank exchange rate, looking ahead, for your money transfer!
Sterling may rise versus the Czech koruna! The pound to Czech koruna interbank exchange rate has hit 29.20 today, just -0.98% below its highest in 11 weeks, or since October 1st.
What's more, looking ahead, the pound could strengthen further against the koruna, because the Czech National Bank (CNB) has taken steps to cool the Czech Republic's housing market.
Yesterday, the CNB lifted its capital requirements, the financial safety net that Czech banks need to hold, up to +1.25% of outstanding loans, from January 2019, thus hitting the koruna.
This has weakened the Czech koruna, because this is the 3rd time that the CNB has lifted its capital requirements since 2015, telling us that Czech banks need a bigger safety net.
The Czech National Bank thinks that Czech banks need a bigger safety net, because Czech house prices rose by +13.3% in Q2 year-on-year, the most in the EU, thereby weighing on the koruna.
'Rapid growth in bank loans, especially loans to households for house purchase and consumption, is continuing,' according to CNB vice-governor Vladimir Tomsik, so dragging down the koruna.
With all this in mind, the pound could hit its 11-week high versus the koruna, as the CNB is forcing Czech banks to hold a larger safety net, to protect Czech banks, and cool the Czech housing market!
Get a free pound to Czech koruna exchange rate quote
Get a free pound to Czech koruna exchange rate quote to get our best exchange rate, and find out how much you could save with Pure FX.
You’ll get an outstanding pound to Czech koruna exchange rate for your money transfer!
Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email email@example.com.