The Czech Republic is located in central Europe. She is known for her long history. The capital of the Czech Republic is Prague. According to the World Bank, about 10.56 million people live in the Czech Republic . The currency used by the Czech Republic is known as the Czech koruna. Its abbreviated international designation is CZK, and the symbol of Czech money is KΔ. One crown is divided into 100 hellers, which are denoted as h. However, these small coins have not been used since 2008. However, product prices are still subject to Hellers.
Attitude to the Euro
Although the Czech Republic is part of the European Union, the euro is rarely accepted by traders. Only a few hotels, shops and restaurants can accept it, but it uses a very low exchange rate. The Czech Republic was supposed to adopt the European currency in 2010. Its economic performance is in line with the standard required by the European Union. Despite this, the country suspended discussion on the adoption of the euro as a currency in 2005. The public did not approve of the idea of ββusing new money. In fact, a survey conducted in 2014 showed that only 16% of Czech residents supported this idea. This figure has not increased over the years, as it remains between 15% and 17%. Despite its current position, the Czech Republic may accept the euro in the future.
History of the Czech crown
The Czech money shown in the photo - kroons - became the national currency in 1993. Prior to this, the country used the Czechoslovak crown. The Czech koruna continued to increase year after year after its introduction. The Czech National Bank (CNB) intervened in November 2013 through monetary stimulus to weaken the exchange rate. His action prevented the excessive strengthening of Czech money.
Coins
When the kroon was introduced in 1993, coins of 10, 20 and 50 Hellers and 1, 2, 5, 10, 20 and 50 kroons were introduced. However, over time, all coins whose denomination was indicated in the Hellers were withdrawn from circulation. In the Czech Republic, currently only coins in denominations of 1, 2, 5, 10, 20 and 50 kroons are used. The country also has a tradition of minting silver and gold commemorative coins, such as 2000 KΔ gold coin. It was released in 2000 in honor of the millennium of Czech architecture.
Banknotes
The first banknotes were issued on February 8, 1993. Later this year, a new series of banknotes was issued. They were issued in denominations of 20, 50, 100, 200, 500, 1000 and 5000 crowns. In subsequent issues of banknotes of denominations of 1000 and 5000 KΔ, security measures were improved. Currently, Czech Republic citizens use banknotes in denominations of 100, 200, 500, 1000 and 2000 KΔ. 5,000 kroons still exist, but are rarely used in circulation. Portraits of important historical figures such as Charles IV, Saint Agnes of Bohemia and Emma Destinova are presented on Czech money.
Czechoslovak Krone
Before the collapse of Czechoslovakia into two countries, there was a single monetary unit - the Czechoslovak krona. At that time, it was not freely convertible. Exchange rates differed depending on the volume of the transaction (export / import speed, non-commodity rate, incoming rate for tourists, resident tourist tariff, etc.) and were regulated by the Central Bank and political authorities strictly in accordance with the purpose of the exchange. Different rates determined the existence of the black market. Some people have succeeded in exchanging convertible currencies for locals.
In 1953 there was a monetary reform. The greatest blow to Czech money came in June 1953. Banknotes of 1945-1950, coins issued in 1946-1953, and coins that were in circulation of the protectorate, Slovakia and pre-war Czechoslovakia were withdrawn from circulation. The exchange of old money for new was carried out from May 1 to 4, 1953. As a result, 52 billion old crowns in circulation were replaced by 1.4 billion. The exchange was carried out in May, before the start of the monetary reform. After the war ended, the krone was pegged to the American dollar. As a result of the reform, she began to focus on the Soviet ruble. An economically unreasonable revaluation of 28% was carried out. Hard currency deficit increased in the country. However, as a result of the monetary reform, the card system was liquidated and the economic crisis was overcome due to the deterioration of the welfare of the population.
Favorable conditions for the existence of the black market disappeared soon after the introduction by the Central Bank of the single market rate of the Czechoslovak krona in 1990. This market rate was based on the US dollar and depreciated the Czechoslovak krona by a total of 80% compared with the official "communist" rate. This also affected the exchange rate of Czech money for rubles. Such an unprecedented devaluation affected local residents very hard, however, this meant the first step towards full and free convertibility.
The transformation of the Czechoslovak economy led to real risks of hidden inflation, and devaluation caused inflation. The Federal Central Bank voted for a very tight monetary policy to cope with these risks. Its main consequence was the transformational economic crisis in the late 1990s, which was discussed by many authors. Nevertheless, this tight monetary policy led to some painful consequences, the risk of inflation was averted.
Facts
The crown in Czech lands has a very long history.
- The Czech Republic has retained the name of the currency since the Austro-Hungarian era; The crown was introduced by Emperor Franz Joseph I in 1892 to replace the old florin.
- Thanks to strict deflationary policies, the Austro-Hungarian krone was still in circulation in the successor countries in the fall of 1918 and in the winter of 1919.
- On February 25, 1919, the National Assembly approved the issuance of new banknotes. The creator of the new currency was the Minister of Finance of the time Alois Rashin.
- From February 26 to March 9, 1919, national borders were closed, and at that time banknotes were printed, which then appeared in circulation in Czechoslovakia.
- One of the opponents of the policy of Alois Rashin and a supporter of price stability was Karel English, who also served as Minister of Finance for some time.
- February 1934: the head of the Central Bank, Willem Pospisil, resigned, this post is held by Karel English, who devalues ββthe Czechoslovak crown by one sixth. Thanks to this, the almost five-year period of recession and deflation in Czechoslovakia ends in the same year.
- The Czech Republic is the successor state that has kept the name of the currency unchanged to this day.
- The Czech koruna suffered greatly from high inflation, both during the existence of Czechoslovakia and later: in 2008, it was recognized as the cheapest currency in the world.
Conversion and courses
The most popular exchange direction is the transfer of Czech money into euros. Also, the crown is changed from USD, JPY, GBP and CHF. The direction of the exchange of Czech money to the ruble is much less commonly used. Exchange rates depend on where the operation is performed. In exchange offices and closer to the city center, it is usually the most disadvantageous. Currency Czech Koruna to ruble changes at the rate of 2.93 for one CZK. You can exchange the currency of other countries. The most popular exchange direction for Czech money to the euro is 25.95 CZK for 1 EUR.
Exchange
There are several ways to change money.
- In exchange points. First you need to make sure that during the operation you do not need to pay extra fees. Unfortunately, the alluring sign β0% commissionβ is often associated with the purchase of foreign currency, rather than its sale. In other places, there may be a small printed text at the bottom of the information panel, which says that fees are not paid, for example, for exchanges of 200 euros and above. It is advisable to ask in advance how much in kroons you can get for your money, and what fees you will have to pay. By law, all exchangers are required to provide information in several languages.
- In the banks. Currency exchange fees are around 2%. Some banks add a minimum fee condition (for example, 30 kroons). Banks in the Czech Republic are closed on weekends and holidays.
- In hotels. The brought currency can be exchanged for crowns even at the hotel. However, they may also charge some fees.
You can never exchange money on the street. You should not conduct exchange operations with people who offer an excellent rate outside the exchange office, bank or other institution.
ATM
You can also get Czech crowns from ATMs, which can be found in sufficient numbers in Czech cities. Nevertheless, before leaving for the Czech Republic, it is advisable to ask your bank how much it will charge for withdrawing cash abroad.
Make payments using Visa, MasterCard, Plus, Maestro, etc. cards in most stores and restaurants.
Prices
Prices for services vary greatly depending on location. Traditionally, the most expensive rooms and restaurants are located in urban centers. However, even in the middle of Prague you can find good and cheap food. The price of one lunch offered by most restaurants is about 120 kroons (350 rubles). For this price, you can usually get the main course and soup. Dinner for one, including a drink, main course and dessert, in an ordinary restaurant can be about 500 crowns (1450 rubles).
Living in a hostel will cost you an average of about 400 kroons (1,100 rubles) per night per person. A room in a regular hotel will cost an average of 2,500 to 4,500 kroons (7300-13,000 rubles) per night, more luxurious rooms cost from 7,000 kroons (20,400 rubles).