Economics
Currency Interventions Jumped Before Czechs Delayed Cap Exit
- Central bank foreign-currency purchases quadrupled in December
- Policy makers discussed negative interest rates last week
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The Czech central bank stepped up koruna sales in December, about a month before it announced the extension of its intervention regime and considered more measures to defend the Swiss-style currency cap.
Policy makers in Prague bought foreign currencies worth 1.54 billion euros ($1.72 billion) in the last month of 2015 to prevent the exchange rate from appreciating past the limit set at about 27 per euro, the Czech National Bank said on its website on Monday. The intervention volume was more than four times higher than in the previous month and the highest since September.