Be Afraid, Central Banker Warns Speculators on Koruna Swings
- Czech central bank is ready to endure volatility, Rusnok says
- Governor still sees koruna-cap exit as likely around mid-2017
Czech paper money on white background
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Investors wanting reassurance from central banks may need to look elsewhere this time.
The Czech National Bank is ready for the market to turn “quite turbulent” after it removes its Swiss-style regime limiting currency appreciation, a decision that now appears most likely around mid-2017, Governor Jiri Rusnok said in an interview in Prague on Wednesday. The monetary authority won’t be overly concerned about short-term swings, which would be natural before the market returns to “normal conditions,” he said.