Press releases
30. 10. 1998

Change in the CNB Exchange Rate Chart in Connection with the Introduction of the Euro

With effect from 1 January 1999, the European Union Council is setting fixed conversion rates which will permanently link the currencies of eleven European Union countries (Germany, France, Italy, Spain, Portugal, Austria, the Netherlands, Belgium, Luxembourg, Finland and Ireland) to the single currency, the euro.

In connection with the introduction of the euro, the Czech National Bank will change its method of declaring exchange rates with effect from 1 January 1999. The exchange rate for the ECU will be replaced by the Czech koruna's exchange rate against the euro, and exchange rates will not be declared for those currencies for which a fixed conversion rate will be set. The exchange rate chart, however, will each day provide the calculated rates of these currencies, i.e. the CZK values of the German mark (DEM), French franc (FRF), Dutch guilder (NLG), Belgian franc (BEF), Luxembourg franc (LUF), Italian lira (ITL), Austrian schilling (ATS), Spanish peseta (ESP), Portuguese escudo (PTE), Finnish markka (FIM) and Irish punt (IEP). The rates of these legacy currencies against the koruna will be calculated daily from the koruna exchange rate of the euro using the conversion rate as an orientation value.

Together with the CZK/EUR exchange rate, the CNB will continue to declare on working days the exchange rates for CZK against the Australian dollar (AUD), British pound (GBP). Danish krone (DKK), Japanese yen (JPY, Canadian dollar (CAD), Hungarian forint (HUF), Norwegian krone (NOK), New Zealand dollar (NZD), Polish zloty (PLN), Greek drachma (GRD), Slovak koruna (SKK), Slovenian tolar (SIT), Swedish krone (SEK), Swiss franc (CHF), US dollar (USD) and special drawing rights (SDR).

When publishing these values, the CNB will use the following terms:

  • Exchange rates- variables obtained from the foreign exchange market (e.g. 1 EUR = 36.219 CZK)
  • Conversion rates - constant values between the euro and currencies of EU member states fixed by the European Central Bank on 31 December 1998 and approved by the EU Council on 1 January 1999, effective for the entire transitional period up to 30 June 2002 (e.g. 1 EUR = 1.98765 DEM).
  • Calculated rates of legacy currencies - variables calculated by dividing the EUR/CZK exchange rate by the appropriate conversion rate (e.g. 1 DEM = 18.222 CZK)

The exchange rate chart effective from 31 December 1998, which will be compiled on 30 December 1998, will be published in the existing form.

The adjusted chart of exchange rates and calculated rates of legacy currencies effective from 1 January 1999, which will be compiled on 31

December 1998, will look like this:

CNB

Exchange rates and calculated rates of legacv currencies
Effective from 1 January 1999
Exchange Rates (17 items):
1 USD = XX.XXX CZK
1 EUR = XX.XXX CZK

(the exchange rates of another 15 currencies are given below)

Calculated rates of legacy currencies (11 items)

Calculated rates of legacy currencies are not exchange rates
1 DEM = XX.XX CZK

(10 other calculated rates of legacy currencies are given below)

All subsequent exchange rate charts will have the same form.

Under the Act on Accounting and other legal norms, exchange rates are used for evaluating assets and liabilities, tax and customs proceedings etc. For client operations, commercial banks are allowed to use their own CZK exchange rates against individual currencies, in line with current practice.

CNB - Public Relations Department