Klaus: Separation of the Czechoslovak currency was a success

The quick and efficient separation of the Czechoslovak koruna into the Czech and Slovak currencies 20 years ago was a success. The separation was an absolute “non-event” for the vast majority of Czechs and Slovaks, said Czech President Václav Klaus at today’s conference marking the 20th anniversary of the CNB and the independent Czech currency. The conference was organised by the Czech National Bank.
“Our currency separation proves such a seemingly extraordinary and highly unusual step can be taken,” said Mr Klaus, adding that the independent Czech economy had also survived the first year after the separation and had recorded modest GDP growth in 1993.
According to Czech National Bank Governor Miroslav Singer, the Czech Republic has benefited from having its own currency. “The independent currency has proved its worth as a buffer against exogenous shocks during the financial and debt crisis,” said the Governor.
“We at the Czech National Bank currently see no strong reason to get rid of our currency in the foreseeable future,” added Mr Singer. This was all the more true, he said, because it was not clear enough how the euro area would look and function in a few years from now.
The Czech National Bank is the central bank of the Czech Republic. It was established on 1 January 1993 by division of the State Bank of Czechoslovakia. It is established under the Constitution of the Czech Republic and carries out its activities in compliance with the Act on the CNB. The new monetary system of the Czech Republic entered into force on 8 February 1993 after the parliaments of the successor countries of the Czech and Slovak Federal Republic approved the dissolution of the short-lasting monetary union and the introduction of two independent currencies – the Czech koruna and the Slovak koruna.

Marek Petruš
CNB spokesman