Czech Republic Enters Currency Wars With First FX Intervention In 11 Years, Koruna Plunges

Tyler Durden's picture


Moments ago the Czech Republic officially entered the global currency wars with the first currency intervention in 11 Years


This has led to the biggest Koruna drop in 4 years. Whoever was long the EURCZK, take the rest of the day off:

Some more from Bloomberg:

  • Czech central bank board approves start of currency interventions at monetary-policy meeting today, bank says in statement on its website.
  • Bank says will intervene to keep koruna to near 27/EUR in statement announcing decision
  • Bmark 2-wk repo rate left at what bank calls “technical zero” of 0.05%
  • All 19 analysts in Bloomberg survey forecast bmark interest rate will be kept unchanged
  • Ceska Narodni Banka to hold news conference at 2:30pm in Prague

Full statement here:

CNB keeps interest rates unchanged, decides on interventions


The CNB Bank Board decided at its meeting today to keep interest rates unchanged. The two-week repo rate was maintained at 0.05%, the discount rate at 0.05% and the Lombard rate at 0.25%.


The Bank Board also decided to start using the exchange rate as an additional instrument for easing the monetary conditions. The CNB will intervene on the foreign exchange market to weaken the koruna so that the exchange rate of the koruna against the euro is close to CZK 27.


The history of the settings of the main instruments of monetary policy and the Bank Board minutes are available at


Repo rate: The CNB’s key monetary policy rate, paid on commercial banks’ excess liquidity as withdrawn by the CNB in two-week repo tenders.


Discount rate: A monetary policy rate which as a rule represents the floor for short-term money market interest rates. The CNB applies it to the excess liquidity which banks deposit with the CNB overnight under the deposit facility.


Lombard rate: A monetary policy interest rate which provides a ceiling for short-term interest rates on the money market. The CNB applies it to the liquidity which it provides to banks overnight under the lending facility.

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Thu, 11/07/2013 - 08:18 | 4130168 hugovanderbubble
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Hungarian ZLOTY : TIMBER Serbian Banks = Default Latvian Banks = default Whole Swedish banks trapped in Latvian and Baltic Real Estate Losses.

Thu, 11/07/2013 - 08:20 | 4130172 markmotive
Thu, 11/07/2013 - 08:25 | 4130182 GetZeeGold
GetZeeGold's picture



According to Obama.....those guys definitely punch above their weight.


Could be serious.....just sayin.

Thu, 11/07/2013 - 08:29 | 4130187 Mae Kadoodie
Mae Kadoodie's picture

Is it too early in the morning to call for a Corona intervention?

Thu, 11/07/2013 - 08:22 | 4130174 Ratscam
Ratscam's picture

poor czechs who were lured into EUR and CHF mortgages, they are working overtime today and for years to come.

Thu, 11/07/2013 - 16:52 | 4132371 Oracle 911
Oracle 911's picture

Not just them, Hungarians too were lured into CHF loans.


One of my Czech acquaintance called it theft by state.

Sat, 11/09/2013 - 11:52 | 4138370 yenda
yenda's picture

guys. there are NO eur, nor chf mortgages in the Czech Republic whatsoever

Thu, 11/07/2013 - 08:29 | 4130186 Non Passaran
Non Passaran's picture

What the fuck are you blathering about?

Thu, 11/07/2013 - 08:36 | 4130198 GetZeeGold
GetZeeGold's picture



He bet me he could confuse you.


He won......I dollar!

Thu, 11/07/2013 - 08:18 | 4130169 markmotive
markmotive's picture

Is this what a 'plunge' looks like?

Thu, 11/07/2013 - 08:23 | 4130178 BearTrap
BearTrap's picture

No, no, no. It's bullish.


Thu, 11/07/2013 - 08:41 | 4130209 Urban Redneck
Urban Redneck's picture

for europocalypse options...

Thu, 11/07/2013 - 08:18 | 4130170 TheInformedShepard
TheInformedShepard's picture


Thu, 11/07/2013 - 08:23 | 4130176 overmedicatedun...
overmedicatedundersexed's picture

anybody see soros lately? how the brits never took him fishing is just amazing.

Thu, 11/07/2013 - 08:34 | 4130195 youngman
youngman's picture

They will lose this one wins this game...

Thu, 11/07/2013 - 08:36 | 4130196 AGAU
AGAU's picture

O/T but important global development if confirmed: Speculation that Miley Cirus has inked a new tattoo depicting her grandmother, hedge accordingly.

Thu, 11/07/2013 - 08:44 | 4130214 Big Brother
Big Brother's picture

Damn, what broker in retail even offers that pair?  I wonder which broker/bank/ECN Soros uses?

Thu, 11/07/2013 - 09:11 | 4130223 Big Brother
Big Brother's picture

I just got hammered on my USDCHF shorts...  Lots of fun today in the currency market.

Thu, 11/07/2013 - 09:00 | 4130254 forwardho
forwardho's picture

It is obvious that our Fantasy, fed supported economy will continue until an outside unknown event, that cannot be controlled, acts upon it. The reality will be incontrovertable. It only works when everyone plays by same rules. At some point A spanner will be thrown into the works.

A Small country, in desparation, may go beyond the rules of "the great Game" and in doing so will shine the crashing light of reality upon this mess.

Thu, 11/07/2013 - 09:02 | 4130261 youngman
youngman's picture

And now the EU comes in with the big hammer....KABOOM

Thu, 11/07/2013 - 09:42 | 4130397 RaceToTheBottom
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Bullish Moser Crystal

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