The Czech Cabinet yesterday approved a deal with the central bank aimed at preventing the Czech currency from strengthening on the back of incoming privatization revenue. The government will not convert part of the proceeds into the CZK and will deposit the proceeds into the central bank’s forex reserves. Moreover, the state will postpone the planned issue of foreign-currency bonds. These measures are a result of an agreement between the central bank governor, the finance minister and the prime minister reached January 8, 2002.
(Ondrej Datka)