The Czech koruna soared today after the nation’s central bank removed the cap on the currency against the euro (CZK27 per euro).
The Czech National Bank announced today:
At its extraordinary monetary policy meeting today, the CNB Bank Board decided to end the CNBâs exchange rate commitment.
The bank warned that it will take measures in case of excessive volatility on the currency markets:
The CNB stands ready to use its instruments to mitigate potential excessive exchange rate fluctuations if needed.
The CNB introduced the cap in November 2013 to help revive inflation.
USD/CZK tumbled as much as 1.15% to 25.0675 as of 12:16 GMT today following volatile swings back and forth.
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