The foreign trade surplus in October came in slightly ahead of expectations. The surplus reached CZK 8.6bn. Exports increased by 13.6% y/y and imports by 11.5% y/y. It seems that the CZK rate, despite its strengthening in past months, has not had any negative impact on foreign trade so far. The real impact might come with some delay, and, according to our CZK rate model, the strong increase should occur only in the last three months. The total yearly balance is headed toward CZK 75-80bn, which is thus the largest value in Czech history.