What is the CZK
CZK is the currency abbreviation for the Czech koruna, the official legal tender for the Czech Republic. The abbreviation CZK is often used in the foreign exchange market, which is where currencies from different countries are bought, sold and exchanged.
Breaking Down CZK
The Czech koruna has been the official currency of the Czech Republic since February 8, 1993, when it replaced the Czechoslovak koruna following the dissolution of Czechoslovakia. The Czeck koruna and the Sloval koruna replaced the Czechoslovak koruna at par.
The Czech Republic joined the EU in 2004 but has not yet adopted the euro as its official currency. The nation continues its preparations to join the currency but does not have an official target date to make the switch over from the koruna to the euro. Initially, the Czech Republic planned to adopt the euro as its official currency in 2012, but opposition halted that move in 2007.
The Czech National Bank, which is headquartered in Prague, currently issues the country’s currency. It mints coins in 1, 2, 5, 10, 20 and 50 koruna denominations and also issues banknotes for 50, 100, 200, 500, 1,000, 2,000 and 5,000 koruna.
The CZK and the Euro
Reservations following the European debt crisis is one of the main drivers behind opposition to the Czech Republic joining the Eurozone and adopting the euro as its currency. While the Czech Republic is still expected to eventually adopt the euro, there has also been talk about the country leaving the European Union entirely in recent years.
Media and many analysts are using the term ‘Czech-Out’ or Czexit to describe a Czech version of Brexit, or leaving the European Union entirely. While Czech President Milos Zeman does not support the idea of leaving the European Union, he has said he is open to holding a referendum so citizens can vote on the issue, mirroring the process taken by the U.K. in June 2016.
The term Czexit is a play on the term Brexit. Other variations for countries across the European Union include Frexit in France, Italexit or Italeave in Italy, Oustria in Austria and Departugal for Portugal.
Within the EU, the Czech Republic enjoys a strong economy with one of the highest GDP growth rates and lowest unemployment rates, at about 2.8 percent in 2017. Exports make up about 80 percent of the country’s GDP, and the challenges the country’s economy face include diversifying from manufacturing, a lack of skilled workers and an aging population.