Reilly Financial Advisors' Chief Investment Officer, David Cariani, presents information on the possible effects of the CNB ending their intervention, allowing the koruna to free float, rather than be tied to the Euro. Please see the attached article.
The Czech National Bank is expected to terminate its intervention in the trading of its currency. There has been much speculation as to when this will occur and how it will affect the Koruna’s exchange rate with other major currencies. The public is necessarily left in the dark as to the details of these types of actions, but we can look to the signs in the market and the results of a new Bloomberg survey, which was released on March 26th, to gain more insight.