Czech money: photo, rate

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The Czech Republic is located in central Europe. It is known for its long history. The capital of the Czech Republic is Prague. According to the World Bank, about 10.56 million people live in the Czech Republic. The currency used by the Czech Republic is known as the Czech crown. Its abbreviated international designation is CZK, and the symbol of Czech money is Kč. One crown is divided into 100 hellers, which are denoted as h. However, these small coins have not been used since 2008. However, item prices are still inclusive of hellers.

Euro attitude

Although the Czech Republic is part of the European Union, the euro is rarely accepted by merchants. Only a few hotels, shops and restaurants can accept it, but it uses a very low exchange rate. The Czech Republic was to adopt the European currency in 2010. Its economic performance met the standard required by the European Union. Despite this, the country has suspended discussions on the adoption of the euro.as a currency in 2005. The public did not approve of the idea of using the new money. In fact, a poll conducted in 2014 showed that only 16% of Czech residents supported this idea. This figure has not increased over the years as it remains between 15% and 17%. Despite the current position, the Czech Republic may adopt the euro in the future.

History of the Czech Crown

The Czech money shown in the photo - crowns - became the national currency in 1993. Prior to this, the country used the Czechoslovak koruna. The Czech koruna has continued to strengthen year after year since its introduction. The Czech National Bank (CNB) intervened in November 2013 through monetary easing to weaken the exchange rate. His action prevented the Czech currency from becoming too strong.

Coins

When the krone was introduced in 1993, coins were introduced in denominations of 10, 20 and 50 hellers and 1, 2, 5, 10, 20 and 50 krone. However, over time, all coins, the value of which was indicated in hellers, were withdrawn from circulation. In the Czech Republic, only 1, 2, 5, 10, 20 and 50 crown coins are currently used. The country also has a tradition of minting silver and gold commemorative coins such as the 2000 Kč gold coin. It was released in 2000 to celebrate the millennium of Czech architecture.

Banknotes

The first banknotes were issued on February 8, 1993. Later this year, a new series of banknotes was issued. They were issued in denominations of 20, 50, 100, 200,500, 1000 and 5000 crowns. Security measures were improved in subsequent issues of 1000 and 5000 Kč banknotes. Currently, citizens of the Czech Republic use banknotes in denominations of 100, 200, 500, 1000 and 2000 Kč. The 5000 crowns still exist but are rarely used in circulation. Czech money features portraits of important historical figures such as Charles IV, Saint Agnes of Bohemia and Emma Destinova.

Czechoslovak koruna

Before the collapse of Czechoslovakia into two countries, there was a single monetary unit - the Czechoslovak crown. At that time it was not freely convertible. The exchange rates differed depending on the volume of the transaction (export/import rate, non-commodity rate, incoming rate for tourists, resident tourist tariff, etc.) and were regulated by the Central Bank and political authorities strictly in accordance with the purpose of the exchange. Various rates determined the existence of a black market. Some people have had success exchanging convertible currencies with locals.

In 1953 the currency reform took place. The greatest blow to Czech money came in June 1953. Banknotes of the 1945-1950 model, coins issued in 1946-1953, as well as coins of the protectorate, Slovakia and pre-war Czechoslovakia that were in circulation were withdrawn from circulation. The exchange of old money for new was carried out from May 1 to May 4, 1953. As a result, 52 billion old kroons in circulation were replaced by 1.4 billion. The exchange was carried out in May, before the start of the monetary reform. After the end of the war, the crown waspegged to the US dollar. As a result of the reform, she began to focus on the Soviet ruble. An economically unjustified revaluation was carried out, amounting to 28%. The deficit of hard currency has increased in the country. However, as a result of the monetary reform, the card system was liquidated and the economic crisis was overcome by deteriorating the well-being of the population.

Favorable conditions for the existence of the black market disappeared soon after the Central Bank introduced a single market rate of the Czechoslovak koruna in 1990. This market rate was based on the US dollar and depreciated the Czechoslovak koruna by a total of 80% compared to the official "communist" rate. This also affected the exchange rate of Czech money for rubles. This unprecedented devaluation took a heavy toll on local residents, but it marked the first step towards full and free convertibility.

The transformation of the Czechoslovak economy led to real risks of hidden inflation, and the devaluation caused inflation. The Federal Central Bank has voted for a very tight monetary policy to deal with these risks. Its main consequence was the transformational economic crisis of the late 1990s, which has been discussed by many authors. However, this tight monetary policy led to some painful consequences, the risk of inflation was averted.

Facts

The crown has a very long history in the Czech lands.

• The Czech Republic has retained the name of the currency since the Austro-Hungarian era;The crown was introduced by Emperor Franz Joseph I in 1892 to replace the old florin.
• Due to a strict deflationary policy, the Austro-Hungarian krone was still in circulation in the successor countries in autumn 1918 and winter 1919.
• On February 25, 1919, the National Assembly approved the issue of new banknotes. The creator of the new currency was the Minister of Finance of that time, Alois Rashin.
• From February 26 to March 9, 1919, national borders were closed while banknotes were printed, which then appeared in circulation in Czechoslovakia.
• One of the opponents of Alois Rashin's policy and a supporter of price stability was Karel English, who also served as Minister of Finance for some time.
• February 1934: Central Bank Governor Wilem Pospisil resigns, replaced by Karel English, who devalues the Czechoslovak koruna by one-sixth. Thanks to this, almost five years of recession and deflation in Czechoslovakia ends in the same year.
• The Czech Republic is the successor state, keeping the name of the currency unchanged to this day.
• The Czech koruna was hit hard by high inflation, both during the existence of Czechoslovakia and later: in 2008 it was recognized as the cheapest currency in the world.

Conversion and rates

The most popular direction of exchange is the transfer of Czech money into euros. The crown is also exchanged with USD, JPY, GBP and CHF. The direction of the exchange of Czech money against the ruble is used much less frequently. Exchange rates depend on whereperform the operation. In exchange offices and closer to the city center, it is usually the most disadvantageous. The currency of the Czech crown to the ruble changes at the rate of 2.93 for one CZK. You can also exchange currencies of other countries. The exchange rate of the most popular direction of exchange of Czech money to the euro is 25.95 CZK for 1 EUR.

Exchange

There are several ways to change money.

• At exchange offices. First you need to make sure that during the operation you do not need to pay extra fees. Unfortunately, the enticing "0% commission" sign is often associated with buying foreign currency rather than selling it. Elsewhere, there may be a small printed text at the bottom of the information panel stating that no fees are payable, such as for exchanges of €200 and up. It is advisable to ask in advance how much kroons you can get for your money, and what fees you will have to pay. By law, all exchange offices are required to provide information in several languages.
• In banks. The currency exchange fee is about 2%. Some banks add a minimum fee condition (for example, 30 kroons). Banks in the Czech Republic are closed on weekends and public holidays.
• In hotels. The brought currency can be exchanged for crowns even at the hotel. However, they may also charge some fees.

You should never exchange money on the street. You should not conduct exchange transactions with people who offer an excellent rate outside the exchange office, bank or other institution.

ATMs

Get Czechkroons can also be found at ATMs, which can be found in sufficient quantities in Czech cities. However, before leaving for the Czech Republic, it is advisable to ask your bank how much they will charge for withdrawing cash abroad.

Make payments with Visa, MasterCard, Plus, Maestro, etc. at most stores and restaurants.

Prices

Prices for services vary widely by location. Traditionally, the most expensive rooms and restaurants are located in urban centers. However, even in the middle of Prague you can find good and cheap food. The price of one meal offered by most restaurants is around 120 kroons (350 rubles). For this price, you can usually get a main course and soup. Dinner for one, including a drink, main course and dessert, in a regular restaurant can cost around 500 kroons (1450 rubles).

Accommodation in a hostel will cost you an average of about 400 crowns (1100 rubles) per night per person. A room in an ordinary hotel will cost an average of 2,500 to 4,500 crowns (7,300-13,000 rubles) per night, more luxurious rooms cost from 7,000 crowns (20,400 rubles).