Turnovers on the Foreign Exchange Market: 7–11 April 2003

The results of the survey of turnovers on the forex market conducted by the CNB every October and April again demonstrate the seasonality of the data monitored. The April turnovers are higher than those recorded in October (October turnovers tend to be affected by the approaching year-end). The latest survey was conducted in the week of 7-11 April 2003.

Compared to October 2002, the total average daily turnover was up by 14.2%, from USD 1.789 billion to CZK 2.043 billion. Spot turnovers recorded the biggest increase, rising by 25.8%, from USD 801 million to USD 1.008 billion. Options saw a rise of 10.8%, from USD 51 million to USD 56 million. Outright forwards and swaps registered the smallest growth (rising by 4.4%, from USD 937 million to USD 978 million).

Compared to a year earlier the total turnover was up by 6.1%, from USD 1.925 billion to CZK 2.043 billion. Only spots recorded growth, rising by 42.4%. Outright forwards and swaps fell by 10.3%, while options recorded a sharp decrease of 55.7%. Underlying this decline was lower exchange rate volatility and a fall in foreign investors' interest in the Czech currency.

The EUR/CZK currency pair continued to dominate in spot transactions (accounting for 54.6% of the total daily spot turnover), whereas USD/CZK prevailed in the case of outright forwards and swaps (with 54.2%).

According to the reference banks' information, the market activity was above average in the week under review. The Czech koruna broke through the long-term barrier of 31.500. The EUR/USD rate was still under the influence of the war in Iraq.

Alice Frišaufová
CNB spokesperson