The Czech is a landlocked country in Central Europe bordered by Germany to the west, Austria to the south, Slovakia to the southeast and Poland to the northeast. The capital and largest city, Prague, has over 1.2 million residents. The Czech Republic includes the historical territories of Bohemia, Moravia, and Czech Silesia.
The Czech Republic is a highly developed country with an advanced, high-income economy and high living standards. The UNDP ranks the country 15th in inequality-adjusted human development. The Czech Republic also ranks as the 10th most peaceful country, while achieving strong performance in democratic governance. Its capital, Prague, has the lowest unemployment rate in the European Union. It is a member of the United Nations, the European Union, NATO, the OECD, the OSCE, and the Council of Europe.
In accordance with Act No. 6/1993 Coll., on the Czech National Bank (pdf, 190 kB), the Czech National Bank is a supervisory authority of the financial market in the Czech Republic. The CNB, therefore, supervises the banking sector, the capital market, the insurance industry, pension funds, credit unions, bureaux-de-change, and payment system institutions. The CNB lays down rules safeguarding the stability of the banking sector, the capital market, the insurance industry, and the pension scheme industry. It systematically regulates, supervises and, where appropriate, issues penalties for non-compliance with these rules. The What’s new in supervision section draws attention to information and documents recently published in other sections of the financial market supervision website, except for information presented using special applications (i.e. Lists and registers, Final decisions, Information disclosed by issuers). The Legislation section contains financial market regulations as well as other methodological and regulatory documents, explanations, answers to FAQs, etc.
|Agriculture||Wheat, barely, potatoes, rapeseed, sugar beets, maize, hops & fruits.|
|Manufacture||Automobile, mining, chemicals, foodstuff & glass.|
|Services (Including financial)||60.3% (2012 estimate)|
|RWE Supply & Trading CZ||Oil & Gas|
|FOXCONN CZ||Consumer electronics|
|Hyundai Motor Manufacturing Czech||Automobiles|
|Energetický a prumyslový holding||Conglomerate|
|EPRO||Oil & Gas|
|ALPIQ ENERGY SE||Support services|
Prague Stock Exchange (PSE) is the largest and oldest securities market organizer in the Czech Republic. After a 50-year hiatus brought about by World War II and the Communist regime, it was reopened in 1993. Thus, PSE resumed the activities of the Prague Commodities and Stock Exchange founded in 1871.
PSE is by law a joint-stock company. Its largest shareholder is CEESEG Aktiengesellschaft, with a 92.739% ownership interest. The General Meeting of Shareholders is the supreme executive body, the Exchange Chamber is the statutory body managing the Stock Exchange’s operations, and the Supervisory Board oversees its operations and overall functioning. The Company is managed by the Chief Executive Officer, who is appointed and recalled by the Exchange Chamber. Trading is conducted through licensed traders who are also members of the Exchange. Exchange trading results and other data are published at www.pse.cz and are disseminated via information agencies and the media.
PSE and its subsidiaries comprise the PX group. In addition to the Stock Exchange, the most important members in the group are POWER EXCHANGE CENTRAL EUROPE (PXE) and Central Securities Depository Prague (CSD Prague). PXE was founded in 2007 and is a trading platform for dealing in electricity for the Czech Republic, Slovakia, and Hungary. CSD Prague has the principal position in the settlement of securities trades on the Czech capital market, maintains the central register for dematerialized securities issued in the Czech Republic, and assigns international securities identification numbers (ISIN) to investment instruments.
PSE is a member of the CEE Stock Exchange Group (CEESEG), which also includes three other Central European stock exchanges: the Vienna Stock Exchange (Wiener Börse), Budapest Stock Exchange (Budapesti Értékt?zsde) and Ljubljana Stock Exchange (Ljubljanska Borza).
The global financial crisis has claimed its third political victim in Eastern Europe, with the collapse of the Czech Republic government. Though the market reaction was tepid — the government’s hold had always been tenuous — it reflects how deeply the downturn has affected the region. Mirek Topolanek, the prime minister of the Czech Republic, will remain as head of a caretaker government until a replacement can be found, after losing the no-confidence vote. Though he’s pledged it won’t disrupt the country’s presidency of the European Union, it’s highly embarrassing, particularly as it coincides with President Barack Obama’s trip to Europe next month.
Yet the market seemed to shrug off the news, with the PX Index in Prague rising 1.4%, as banks such as bailed out Austrian Erste Bank, Komercni Banka and property firm Orco led the market higher. The impact on the currency market was more profound, though still relatively mild, with the koruna falling to 20.25 against the dollar, from 19.91 and to 27.30 against the euro, from 26.91. Observers said that the relatively better shape of Czech Republic, compared with the likes of Hungary, Romania or Baltic nations such as Latvia, means that political instability will not be as devastating as it has been in those countries, where massive stimulus packages and IMF aid has been needed to stabilize the situation.
Historically low-interest rates have meant that there was no incentive for Czechs to seek out foreign currency loans in the hope of better rates. The high level of foreign currency debt taken out by corporations and individuals in countries such as Hungary has proved devastating, as collapsing currencies have led to soaring default rates. The developments in Czech Republic follow the collapse of the Latvian government earlier this month, while just two days ago the prime minister of Hungary said he would be stepping down.
Czechoslovakia was occupied by Germany in World War II, and was liberated in 1945 by Soviet and American forces. Most of the German-speaking inhabitants were expelled after the war and thus the country lost its sizeable minority and its bilingual character. The Communist Party of Czechoslovakia won the 1946 elections. Following the 1948 coup d'état, Czechoslovakia became a one-party communist state under Soviet influence. In 1968, increasing dissatisfaction with the regime culminated in a reform movement known as the Prague Spring, which ended in a Soviet-led invasion. Czechoslovakia remained occupied until the 1989Velvet Revolution, when the communist regime collapsed and a multiparty parliamentary republic was formed. On 1 January 1993, Czechoslovakia peacefully dissolved, with its constituent states becoming the independent states of the Czech Republic and Slovakia.
In November 1989, Czechoslovakia returned to a liberal democracy through the peaceful "Velvet Revolution". However, Slovak national aspirations strengthened and on 1 January 1993, the country peacefully split into the independent Czech Republic and Slovakia. Both countries went through economic reforms and privatizations, with the intention of creating a market economy. This process was largely successful; in 2006 the Czech Republic was recognized by the World Bank as a "developed country", and in 2009 the Human Development Index ranked it as a nation of "Very High Human Development". From 1991, the Czech Republic, originally as part of Czechoslovakia and since 1993 has been a member of the Visegrád Group and from 1995, the OECD. The Czech Republic joined NATO on 12 March 1999 and the European Union on 1 May 2004. On 21 December 2007, the Czech Republic joined the Schengen Area.
The Czech koruna or Czech crown (CZK) has been the currency of the Czech Republic since 8 February 1993 when, together with its Slovak counterpart, it replaced the Czechoslovak koruna at par. The official name in Czech is koruna česká. The ISO 4217 c
ode is CZK and the local acronym is Kč, which is placed after the numeric value (e.g., "50 Kč"). One koruna equals 100 haléřů. The Czech koruna replaced the Czechoslovak koruna when it was introduced in 1993 after the dissolution of Czechoslovakia. It first consisted of over stamped 20, 50, 100, 500, and 1000 Czechoslovak koruna banknotes, but a new series was properly introduced in 1993.
The Czech Republic planned to adopt the euro in 2010, but its government suspended that plan indefinitely in 2005. Although the country is economically well positioned to adopt the euro, there is considerable opposition to the move within the Czech Republic. According to a survey conducted in April 2014, only 16% of the Czech population was in favor of replacing the koruna with euro. According to the Spring 2015 flash Euro-barometer, public opinion is 70% against euro-adoption vs. 29% for euro-adoption.
The Czech Republic uses the Czech koruna as its currency and does not participate in European Exchange Rate Mechanism II. It is bound by its 2003 Treaty of Accession to the European Union to join the Eurozone once it has satisfied the euro convergence criteria. Although the Czech Republic is economically well positioned to adopt the euro, following the European debt crisis there has been considerable opposition among the public against the adoption of the euro currency. According to a Euro-barometer poll in April 2015, 29% of Czechs were in favor of introducing the euro while 70% were opposed. As of 2015, there is no target date for joining the ERM II or adopting the euro.
In 1993, coins were introduced in denominations of 10, 20 and 50 haléřů, 1, 2, 5, 10, 20 and 50 korun. The 10 and 20 haléřů coins were taken out of circulation by 31 October 2003, and the 50 haléřů coins were withdrawn from circulation on 31 August 2008 due to their diminishing purchasing power and circulation. In 2000, the 10 and 20 korun coins were minted with different obverses to commemorate the Millennium. In 1993 & 1994 coins were minted in Winnipeg and Hamburg, then in the Czech Republic. All circulation coins were designed by Ladislav Kozak (1934-2007). Since 1997, sets for collectors are also issued yearly with proof quality coins. There's also a tradition of issuing commemorative coins - including silver and gold coins - for numismatic purposes.
The first Czech banknotes issued on 8 February 1993 consisted of Czechoslovak notes with adhesive stamps affixed to them. Only the 100, 500 and 1000 korun denominations were overstamped, the lower denominations circulated unchanged during this transitional period. Each stamp bears a Roman and Arabic number identifying the denomination of the banknote to which it is affixed (C and 100, D and 500, M and 1,000). Subsequent issues of the 1,000-korun note replaced the adhesive stamp with a printed image of same. A newly designed series of banknotes of denominations 20, 50, 100, 200, 500, 1000 and 5000 korun were introduced later in 1993 and are still in use at present - except for 20, 50 and the first versions of 1000 and 5000 korun notes, since the security features of 1000 and 5000 notes were upgraded in the subsequent issues (The 2000 korun note, which has been introduced in 1996, is still valid in all versions, with and without the new security features). These banknotes feature renowned Czech persons on the obverse and abstract compositions on the reverse. Modern protective elements can be found on all banknotes.
|National Song||"Kde domov můj"|
|Currency||Czech koruna (CZK)|
|GDP / GDP Rank||350.72 Billion USD|
|GDP Growth Rate||4.2 Percent|
|GDP Per Captial||$33231.522 (PPP)|
UTC+01:00 (CET) (CRT)
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
President – Miloš Zeman
Prime Minister – Andrej Babiš
|Website||Go to the web|
|Public Debt||37.67 Percent|
|Unemployment Rate||4.045 Percent|
|Labor Force (Occupation)||-|