MLADA BOLESlAV: Volkswagen unit Skoda Auto, the Czech Republic's biggest company and exporter, expects the crown to remain stable after the central bank lets the currency float freely, a board member said on Wednesday.
"It is not so good if it fluctuates up and down like crazy ...But nobody anticipates that. There is no reason to see something like that," Klaus-Dieter Schurmann, Skoda's board member for commercial affairs, told reporters.
"The Czech crown, I assume, will be still very, very stable in comparison to other currencies that are more volatile."
With inflation back on target, the Czech National Bank has indicated it might do away with a policy introduced in 2013 of keeping the crown weaker than 27 to the euro.
The cap is expected to end in April or May.
Skoda is ready for some "normal" fluctuations in the crown, Schurmann said, without elaborating.
The crown could firm by more than 4 percent against the euro in the next 12 months with the cap removed, a Reuters poll showed this month.
<Center><b><i>Copyright Reuters, 2010</b></i><br></center>
Comments
Comments are closed for this article.