Evolution of the Czech National Bank's Holdings of Foreign Exchange Reserves

12 Pages Posted: 7 Oct 2014

See all articles by Michal Skorepa

Michal Skorepa

Institute of Economic Studies

Mojmír Hampl

Czech National Bank (CNB)

Date Written: August 2014


A central bank may decide to conduct foreign exchange interventions when it concludes that the exchange rate level without such interventions would be insufficiently strong. A by-product of such interventions will then be a build-up of official foreign exchange (FX) reserves. A case in point is the evolution, since the late 1990s, of the official FX reserves held by the Czech National Bank (CNB). In this paper, we take a closer look at this particular case, focusing specifically on the interventions that the CNB conducted in late 2013. We also examine some less traditional ways in which the CNB’s activities have directly or indirectly affected the Czech koruna exchange market over the past dozen years.

Full publication: The Transmission of Unconventional Monetary Policy to the Emerging Markets

Keywords: Appreciation, economic convergence, foreign exchange intervention, international reserves, privatisation

JEL Classification: E52, F31, F41, O24

Suggested Citation

Skorepa, Michal and Hampl, Mojmir, Evolution of the Czech National Bank's Holdings of Foreign Exchange Reserves (August 2014). BIS Paper No. 78j, Available at SSRN: https://ssrn.com/abstract=2499758

Michal Skorepa (Contact Author)

Institute of Economic Studies ( email )

Opletalova St. 26
Prague, 11000
Czech Republic

Mojmir Hampl

Czech National Bank (CNB)

Na Prikope 28
CZ-11503 Praha 1
Czech Republic

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