The Czech crown will perform better during the inflation than other comparable currencies

Published: 22.11.2021 Related countries:  United Kingdom United Kingdom

The assessment of the expected development of inflation in the world is shifting from the word „transient“ to the word „permanent“, which increases the probability of a significant shift in basic income. In such a scenario, developing country currencies are less likely to escape inflation.

According to the JP Morgan's (US investment bank) analysts, inflation and the associated growth in bond yields in developed countries will lead to a decline in the exchange rates of those countries, that belong to the category of young market economies in Europe, the Middle East and Africa. However, according to them, there will be significant differences between individual countries, and for example the Czech crown and the Russian ruble will do better.

The bank's analysts therefore continue to prefer the Czech crown and the Russian ruble and recommend that clients keep these currencies above average in relation to other currencies.

Source: Czech News Agency