The Czech koruna fell today morning after the Czech National Bank and the government agreed to curb an effect of privatization on the exchange rate. The koruna depreciated from 32.15 CZK/EUR to 32.35 CZK/EUR. After a mild correction movement, the koruna was trading at 32.30 CZK/EUR yesterday in the evening. The agreement has to be finalized and approved by the government on its meeting scheduled for next week.
The privatization committee is going to recommend not accepting any bid for the sale of CEZ and regional distribution companies. None of competitors meet all government's requirements. Opposition politicians also want cabinet to cancel privatization of power sector.
The Czech National Bank released the minutes of the meeting of the CNB Board on Dec 20, 2001. The most important message of the minutes is an indication of a cut CNB's inflation and GDP forecasts that should be included in a new Inflation Report.
European Commission announced that 75% of cash operations in the eurozone is realized in euro. Simultaneously, a usage of national currencies of eurozone countries declines. After dropping sharply in the course of 2001, from EUR 380 billion on 1 January 2001 to EUR 270 billion on 1 January 2002, the circulation of national banknotes fell an additional 18% in the first week of 2002, to EUR 220.7 billion on 7 January.
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