What is the 'CZK'

CZK is the currency abbreviation for the Czech koruna, the official legal tender for the Czech Republic. The abbreviation CZK is often used in the foreign exchange market, which is where currencies from different countries are bought, sold and exchanged.

Breaking Down 'CZK'

The Czech koruna has been the official currency of the Czech Republic since February 8, 1993, when it replaced the Czechoslovak koruna following the dissolution of Czechoslovakia. The Czeck koruna and the Sloval koruna replaced the Czechoslovak koruna at par.

The Czech Republic joined the EU in 2004 but has not yet adopted the euro as its official currency. The nation continues its preparations to join the currency but does not have an official target date to make the switch over from the koruna to the euro. Initially, the Czech Republic planned to adopt the euro as its official currency in 2012, but opposition halted that move in 2007.

The Czech National Bank, which is headquartered in Prague, currently issues the country’s currency. It mints coins in 1, 2, 5, 10, 20 and 50 koruna denominations and also issues banknotes for 50, 100, 200, 500, 1,000, 2,000 and 5,000 koruna.

The CZK and the Euro

Reservations following the European debt crisis is one of the main drivers behind opposition to the Czech Republic joining the Eurozone and adopting the euro as its currency. While the Czech Republic is still expected to eventually adopt the euro, there has also been talk about the country leaving the European Union entirely in recent years.

Media and many analysts are using the term ‘Czech-Out’ or Czexit to describe a Czech version of Brexit, or leaving the European Union entirely. While Czech President Milos Zeman does not support the idea of leaving the European Union, he has said he is open to holding a referendum so citizens can vote on the issue, mirroring the process taken by the U.K. in June 2016.

The term Czexit is a play on the term Brexit. Other variations for countries across the European Union include Frexit in France, Italexit or Italeave in Italy, Oustria in Austria and Departugal for Portugal.

Within the EU, the Czech Republic enjoys a strong economy with one of the highest GDP growth rates and lowest unemployment rates, at about 2.8 percent in 2017. Exports make up about 80 percent of the country’s GDP, and the challenges the country’s economy face include diversifying from manufacturing, a lack of skilled workers and an aging population.

RELATED TERMS
  1. SKK (Slovak Koruna)

    SKK is the currency abbreviation for the Slovak koruna (SKK), ...
  2. Euro

    The euro is the official currency of 19 members of the European ...
  3. European Community - EC

    The European Community was one of the three pillars of the European ...
  4. EUR

    EUR is the currency code used to represent the euro, the official ...
  5. Key Currency

    A key currency used is money issued by stable, developed country ...
  6. Currency Pair: EUR/USD (Euro/U.S. ...

    The Currency Pair EUR/USD is the abbreviation for the euro and ...
Related Articles
  1. Personal Finance

    Travel By Buying Power

    Looking to score a cheap vacation this summer? Find out where you will get the most bang for your U.S. buck.
  2. Investing

    Budget Travel: Europe's Cheapest Countries

    Even with a strong dollar, Europe is pricey. Head east and you'll find four EU countries that deliver scenery, adventures and culture at bargain rates.
  3. Trading

    Behind The Euro: History And Future

    The euro was designed to create economic parity among eurozone nations. Discover where it's going and where it's been.
  4. Personal Finance

    How the Banana Republic Credit Card Works

    For consumers who pay off their balances every month, the perks offered by the Banana Republic credit card may be worth your while.
  5. Trading

    Why the Euro Failed to Become the World's Reserve Currency

    Examine the current state of the U.S. dollar as the world's reserve currency; learn the major reasons why the euro has failed to replace it in that capacity.
  6. Trading

    6 top-traded currencies and why they're so popular

    Every currency has specific features that affect its underlying value and price movements in the forex market. Learn why these currencies are especially popular for trading.
  7. Trading

    Currency fluctuations: How they effect the economy

    Currency fluctuations are a natural outcome of the floating exchange rate system that is the norm for most major economies. Read on for what effects these changes can have.
  8. Insights

    Disbanding The Euro - A Worst-Case Scenario

    What would the fallout be if the world's second-largest currency disappears?
  9. Insights

    A Primer On Reserve Currencies

    For nearly a century, the U.S. dollar has served as the world's premier reserve currency, but the future is uncertain.
RELATED FAQS
  1. What are the nations with the lowest PPP (purchasing power parity) with respect to ...

    Learn how purchasing power parity (PPP) is used to compare the price of goods between countries, and which countries have ... Read Answer >>
  2. What is foreign exchange?

    Foreign exchange is the conversion of a country's currency into another. In a free economy, a country's currency is valued ... Read Answer >>
  3. How do national interest rates affect a currency's value and exchange rate?

    Generally, higher interest rates increase the value of a country's currency and lower interest rates tend to be unattractive ... Read Answer >>
  4. What are key economic factors that can cause currency depreciation in a country?

    Read about the causes of currency devaluation, and find out how to differentiate between relative and absolute currency devaluation. Read Answer >>
Trading Center