The Czech National Bank and Foreign Ministry agreed on measures Wednesday aimed at restraining the fast appreciation of the Czech currency, Foreign Minister Miroslav Kalousek said. ( dpa )
Under the deal, the public sector's foreign exchange transactions would sidetrack the foreign exchange market, he said.
Any future privatization income would be deposited in foreign currencies at a central bank account and European Union funds would be converted to central bank's koruna reserves.
"The purpose of the agreement is to avoid the foreign exchange market. Converting money on the foreign exchange market means stronger koruna," Kalousek told a news conference.
The centre-right coalition plans to privatize the Prague Ruzyne international airport and national carrier Czech Airlines next year.
The government would be able to access needed funds by employing foreign-exchange swaps, the minister said.
The koruna has firmed some 10 per cent to the euro and some 20 per cent to the dollar since a year ago, or beyond what economists consider healthy.
The strong currency has been hurting exporters. The government, however, is reluctant to quickly adopt the euro.