Announcement of the Czech National Bank on a change in the turkish lira exchange rate publishing and in the extent of exchange rates publishing as of 1.1. 2005

With effect from 1 January 2005 the currency of the Republic of Turkey will be re-denominated. The Turkish lira TRL will be replaced with the New Turkish lira TRY. The relation between these currencies will be 1 TRY = 1.000.000,- TRL.

In connection with this change the Czech National Bank will implement a change in the Turkish lira exchange rate publishing with effect from 1 January 2005. Effective the same date the reference rates of two more currencies: RUB - Russian rouble and HRK - Croatian kuna, will be published. The exchange rates effective from 31 December 2004, which will be set on 31 December 2004, will be published in the existing form and extent.

The new list of exchange rates effective from 3 January 2005, which will be set on 3 January 2005, will contain the New Turkish lira and also the rates of Russian rouble and Croatian kuna.

Under the Act on Accounting and other legal norms, the exchange rates are used for non-business purposes (valuing assets and liabilities, tax and customs proceedings, etc). For client operations, commercial banks are allowed to use their own CZK exchange rates vis-á-vis individual currencies, in line with current practice.