Czech central bank's foreign assets jump by EUR 15bn in January

PRAGUE: The Czech central bank's receivables from abroad jumped by 49.5 billion crowns, or 1.83 billion euros, between January 20 and January 31, putting the increase for the full month at record 15 billion euros, the bank's balance sheet showed on Monday.

The bank's foreign assets growth has served as a rough guide to the bank's purchases of foreign currency on the market to keep the crown on the weak side of 27 per euro.

The central bank intensified its intervention activity in early to mid-January as investors piled into the market on chances the bank will end its cap on crown strength sometime after the end of the first quarter.

Traders have said the influx eased in the second half of the month, as long positions in the crown grew and the bank warned investors the currency could move in both directions after it drops the cap.

The bank's foreign receivables are also influenced by yield on reserve assets, conversions of EU subsidies for the government and exchange rate changes, but the balance sheet has been a solid ballpark guide to interventions.

Official intervention data for January will be released on March 7. The size of foreign reserves at the end of January will be released on Tuesday.