The Czech koruna appreciated modestly on Wednesday following the nomination of new Czech National Bank (CNB) new board members. In the opinion of economists at Commerzbank, the EUR/CZK could move back towards the 24.30 area soon.

New CNB’s appointments appear to be fairly ‘regular’

“There was relief news in that Czech President Milos Zeman nominated three new board members (somewhat earlier than we had anticipated), but they turned out to be relatively uncontroversial names such as ex-board members, Eva Zamrazilova and Jan Frait (the latter, the existing head of CNB’s financial stability department) and Karina Kubelkova (from the Czech Chamber of Commerce). Zamrazilova will be a deputy governor.”

“Our conclusion only is that these appointments appear to be fairly ‘regular’ and not amounting to some controversial overhaul in favour of dovish members.”

“The markets are likely to now put this whole controversy about presidential interference into monetary policy behind – which means that EUR/CZK could return towards the 24.30 levels soon.”