Czech koruna


The koruna is the currency of the Czech Republic since 1993. The koruna is one of European Union's 11 currencies, and Czechia is legally bound to adopt the euro currency in the future.
The official name in Czech is koruna česká. The ISO 4217 code is CZK and the local acronym is Kč, which is placed after the numeric value or sometimes before it. One koruna equals 100 haléřů, but haléře have been withdrawn, and the smallest unit of physical currency is 1 Kč.

History

In 1892, the Austro-Hungarian krone replaced the gulden, at the rate of one gulden equaling two kronen. The name "krone" was invented by the emperor, Franz Joseph I of Austria. After Austria-Hungary dissolved in 1918, the only successor state that kept the name of the currency, the koruna, was Czechoslovakia. In the late 1920s, the Czechoslovak koruna was the hardest currency in Europe. During the Second World War, the currency on the occupied Czech territory was artificially weakened. The Czechoslovak koruna was restored after the war. It underwent a highly controversial monetary reform in 1953.
The Czech koruna replaced the Czechoslovak koruna when it was introduced in 1993 after the dissolution of Czechoslovakia. It first consisted of overstamped 20-, 50-, 100-, 500-, and 1000-Czechoslovak koruna banknotes, but a new series was properly introduced in 1993.
In November 2013, the Czech National Bank intervened to weaken the exchange rate of the koruna through a monetary stimulus to stop the currency from excessive strengthening. This was meant to support the Czech economy, mainly focused on export, but people were unhappy about this step because it was set up before Christmas, which led to raising the prices of imported goods. In late 2016, the ČNB stated that the return to conventional monetary policy was planned for mid-2017. After higher-than-expected inflation and other figures, the national bank removed the cap at a special monetary meeting on April 6, 2017. The koruna avoided significant volatility and City Index Group stated: "If you want to drop a currency peg, then the ČNB can show you how to do it".

Euro adoption discussion

The Czech Republic planned to adopt the euro in 2010, but its government suspended that plan indefinitely in 2005. Although the country is economically well positioned to adopt the euro, there is considerable opposition to the move within the Czech Republic. According to a survey conducted in April 2014, only 16% of the Czech population was in favour of replacing the koruna with the euro. As reported by an April 2018 survey by CVVM, this value has remained at nearly identical levels over the past four years, with only 20% of the Czech population above 15 years old supporting euro adoption.

Coins

The coins of the Czech koruna increase in size and weight with value.
In 1993, coins were introduced in denominations of 10, 20 and 50 haléřů, 1, 2, 5, 10, 20 and 50 korun. The 10- and 20-haléřů coins were taken out of circulation by 31 October 2003 and the 50-haléřů coins by 31 August 2008 due to their diminishing purchasing power and circulation. However, financial amounts are still written with the accuracy of 1-haléř ; prices in retail shops are usually multiples of CZK 0.10. When transactions are made, the amount is rounded to the nearest integer.
In 2000, the 10- and 20-korun coins were minted with different obverses to commemorate the millennium. In 1993 and 1994, coins were minted in Winnipeg and Hamburg, then in the Czech Republic. The 10- and 50-korun coins were designed by .
Since 1997, sets for collectors are also issued yearly with proof-quality coins. Also, a tradition exists of issuing commemorative coins – including silver and gold coins – for numismatic purposes.
For a complete listing, see Commemorative coins of the Czech Republic.

Banknotes

The first Czech banknotes were issued on 8 February 1993 and consisted of Czechoslovak notes with adhesive stamps affixed to them. Only the 100-, 500- and 1,000-korun notes were overstamped, the lower denominations circulated unchanged during this transitional period. Each stamp bears a Roman and Arabic numeral identifying the denomination of the banknote to which it is affixed. Subsequent issues of the 1,000-korun note replaced the adhesive stamp with a printed image of same.
A newly designed series of banknotes in denominations of 20-, 50-, 100-, 200-, 500-, 1,000 and 5,000-korun were introduced later in 1993 and are still in use at present – except for 20, 50 and the first versions of 1,000 and 5,000 korun notes, since the security features of 1,000 and 5,000 notes were upgraded in the subsequent issues. These banknotes feature renowned Czech persons on the obverse and abstract compositions on the reverse. Modern protective elements can be found on all banknotes.

Stamped banknotes

Original Czech banknotes

The Greater coat of arms of the Czech Republic can be found on the reverse side of all denominations.

Commemorative banknotes

For the 100th anniversary of the Czechoslovak koruna, a new banknote will be created, featuring the face of Czech politician Alois Rašín. There is also an overprint on the normal 100 Korun note as second commemorative note.

Exchange rates

Historic rates

The currency was on a record exchange rate run in 2008.
Most traded currencies :
Year USD EUR GBP CHF JPY
200819.34626.93028.27018.1320.21348
200918.36826.46529.79817.8370.19875
201018.75125.06029.10820.0430.23058
201119.94025.80030.88621.2200.25754
201219.05525.14030.81220.8310.22130
201319.89427.42532.91122.3440.18957
201422.83427.72535.59123.0580.19090
201524.82427.02536.82224.9300.20619
201625.63927.02031.58625.1660.21907
201721.29125.54028.78621.8240.18915
201822.46625.72528.76222.8270.20447
201922.62125.41029.86623.4160.20844

Source: Czech National Bank exchange rates

Current rates