2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Czech Republic


2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Czech Republic

Fund Relations

(As of April 30, 2017; unless specified otherwise)

Membership Status: Joined 01/01/1993; Article VIII

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Financial Arrangements:

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Projected Payments to Fund:

(SDR Million; based on existing use of resources and present holdings of SDRs):

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Exchange Rate Arrangement:

The currency of the Czech Republic is the Czech koruna, created on February 8, 1993 upon the dissolution of the currency union with the Slovak Republic, which had used the Czechoslovak koruna as its currency. The de jure exchange rate arrangement is floating. The external value of the koruna is determined by supply and demand in the interbank foreign exchange market, in which the Czech National Bank (CNB) participates. In November 7, 2013, with inflation below target and continued undershooting expected, the CNB announced, that it would (if needed) intervene in the foreign exchange market to weaken the koruna to bring its exchange rate against the euro close to CZK 27. While the exchange rate appears to be floating since the Czech Central Bank removed the koruna/euro floor on April 6, 2017, more observations are necessary to determine the new trend. Until then, the de facto exchange rate arrangement remains classified as stabilized.

The Czech Republic has accepted the obligations of Article VIII and maintains an exchange system that is free of restrictions and multiple currency practices on the making of payments and transfers for current international transactions. The Czech Republic maintains exchange restrictions for security reasons, based on UN Security Council Resolutions and Council of the European Union Regulations that have been notified to the Fund for approval under the procedures set forth in Executive Board Decision No. 144-(52/51).

Last Article IV Consultation:

The last Article IV consultation with the Czech Republic was concluded on June 24, 2016. The staff report and the press release were published on July 7, 2016.

FSAP Participation and ROSCs:

An FSAP was carried out in late 2000/ early 2001. The Financial System Stability Assessment was considered by the Executive Board on July 16, 2001, concurrently with the staff report for the 2001 Article IV Consultation. An FSAP update was carried out in 2011. ROSCs on: banking supervision; data dissemination; fiscal transparency; securities market; and transparency of monetary and financial policies were published on the Fund’s external website on July 1, 2000.

Technical Assistance: See attached table.

Implementation of HIPC Initiative: Not Applicable.

Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable.

Implementation of Post-Catastrophic Debt Relief (PCDR): Not Applicable.

Safeguards Assessments: Not Applicable.

Czech Republic: Technical Assistance, 1991–2016

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Statistical Issues

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Table of Common Indicators Required for Surveillance

(As of June 7, 2017)

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Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Data for the state budget are available with monthly frequency and timeliness, while data on extra budgetary funds are available only on an annual basis.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).

Czech Republic: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Czech Republic
Author: International Monetary Fund. European Dept.