Friday, April 4, 2008

The Falling Dollar - April edition...















It's another first week of the month, and no it's not April Fool's Day - I purposely didn't post about the dollar on the first. In a nutshell, over the last month we have had more of the same from the dollar - weakening. You can see from the graph that the trend is still lower. There was a brief recover from 16.0 to 16.5 in the middle of the month, but that was just the dollar mocking us before it turned and continued its slide. As I write this the dollar is below 16 again, standing at 15.94. When we arrived in Prague in August of 2006 we could get about 23 Czech crowns (koruni) for one dollar, now we can only get around 16, a 30% drop.

Today's Prague Daily Monitor reports that the Czech government is going to get proactive in moderating the crown's strength. While the dollar has fallen tremendously to the crown, the crown has also grown stronger against the Euro, but at a slower pace.

Measures against strong crown to be established in a week
prepared by Prague Daily Monitor editorial staff / published 4 April 2008

An agreement concerning the excessive strengthening of the Czech currency being put together by Ministry of Finance and Czech National Bank should be ready in a week. E15 informs that the aim of the agreement is to freeze the flow of foreign currency into the Czech economy.

We'll see how much this helps - and how quickly.

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