A recent report from Reuters forecasts the Czech crown as the sole currency in Central Europe set to appreciate over the next year. This contrasts with other regional currencies facing stability concerns or limited growth potential.
Factors driving growth
Currently trading at EUR 1: CZK 25.38, analysts anticipate the crown potentially dipping below CZK 25 by the third quarter of this year, stabilizing around CZK 25.3 in the coming months.
Strengthening fundamentals
Economist Jaromír Gec attributes the anticipated crown appreciation to the gradual resurgence of domestic economic activity. Additionally, a robust foreign trade surplus bolsters the currency's outlook.
Potential impact of US election
Experts caution that the outcome of the 2024 U.S. election could influence the crown's trajectory. A victory for presidential candidate Donald Trump may lead to heightened U.S. inflation and interest rates, posing additional challenges for the crown's stability.
The article was prepared by the CzechTrade Morocco team.
Source: www.expats.cz
