a) Thehaléř is still used for accounting purposes (e.g., financial reports).
Thekoruna, orcrown (sign:Kč;code:CZK,Czech:koruna česká), has been the currency of theCzech Republic since 1993. The koruna is one of theEuropean Union's eight currencies, and the Czech Republic is legally bound toadopt the euro in the future.
The official name inCzech iskoruna česká (pluralkoruny české, though thezero-suffixedgenitiveplural formkorun českých is used on banknotes and coins of value 5 Kč or higher). TheISO 4217 code is CZK and the local acronym is Kč, which is placed after the numeric value (e.g., "50 Kč") or sometimes before it (as is seen on the 10-koruna coin). One crown is made up of 100hellers (abbreviated as "h", official name in Czech:singular:haléř,nominativeplural:haléře,genitiveplural:haléřů – used with numbers higher or equal to 5 – e.g.3 haléře, 8 haléřů), but hellers have now been withdrawn from circulation, and the smallest unit of physical currency is 1 Kč.
In 1892, theAustro-Hungarian krone replaced thegulden at the rate of two kronen to one gulden (which is also the reason why the 10 Kč coin had been nicknamedpětka or "fiver" - and has been in use in informal conversation up until nowadays). The name was suggested by the emperor,Franz Joseph I of Austria. After Austria-Hungary dissolved in 1918,Czechoslovakia was the only successor state to retain the name of its imperial-era currency. In the late 1920s, theCzechoslovak koruna was the hardest currency in Europe. During theSecond World War, the currency on the occupied Czech territory was artificially weakened. The Czechoslovak crown was restored after the war. It underwent a highly controversial monetary reform in 1953.
The Czech koruna replaced the Czechoslovak koruna in 1993 after the dissolution ofCzechoslovakia. It first consisted of overstamped 20 Kčs, 50 Kčs, 100 Kčs, 500 Kčs, and 1,000 Kčs banknotes, and a new series was properly introduced in 1993.
In November 2013, theCzech National Bank (ČNB) intervened to weaken the exchange rate of the koruna through amonetary stimulus to stop the currency from excessive strengthening.[1] This was meant to support the Czech economy, mainly focused on export, but people were unhappy about this step because it was set up before Christmas, which led to raising the prices of imported goods. In late 2016, the ČNB stated that the return to conventional monetary policy was planned for mid-2017.[2][3] After higher-than-expected inflation and other figures, the national bank removed the cap at a special monetary meeting on April 6, 2017. The koruna avoided significant volatility andCity Index Group stated: "If you want to drop acurrency peg, then the ČNB can show you how to do it".[4]
The Czech Republic planned to adopt theeuro in 2010, but its government suspended that plan indefinitely in 2005.[5] Although the country is economically well positioned to adopt the euro, there is considerable opposition to the move within the Czech Republic.[6] According to a survey conducted in April 2014, only 16% of the Czech population was in favour of replacing the koruna with the euro.[7] As reported by an April 2018 survey by CVVM (Public Opinion Research Center), this value remained at nearly identical levels between 2014-18, with only 20% of the Czech population above 15 years old supporting euro adoption.[8]
The coins of the Czech koruna increase in size and weight with value.
In 1993, coins were introduced in denominations of 10, 20 and 50 haléřů (h), 1 Kč, 2 Kč, 5 Kč, 10 Kč, 20 Kč and 50 Kč. The 10 h and 20 h coins were taken out of circulation by 31 October 2003 and the 50 h coins by 31 August 2008 due to their diminishing purchasing power and circulation.[9] However, financial amounts are still written with the accuracy of 1-haléř (CZK 0.01); prices in retail shops are usually multiples of CZK 0.10. When cash transactions are made, the amount is rounded to the nearest integer.
In 2000, the 10 Kč and 20 Kč coins were minted with different obverses to commemorate themillennium. In 1993 and 1994, coins were minted inWinnipeg andHamburg, then in the Czech Republic. The 10 Kč and 50 Kč coins were designed byLadislav Kozák [cs] (1934–2007).
Since 1997, sets for collectors are also issued yearly with proof-quality coins. Also, a tradition exists of issuing commemorative coins – including silver and gold coins – for numismatic purposes.
The first Czech banknotes were issued on 8 February 1993 and consisted of Czechoslovak notes with adhesive stamps affixed to them. Only the 100 Kčs, 500 Kčs and 1,000 Kčs notes were overstamped, the lower denominations circulated unchanged during this transitional period. Each stamp bears a Roman and Arabic numeral 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 Kč note replaced the adhesive stamp with a printed image of same.[11]
A newly designed series of banknotes in denominations of 20 Kč, 50 Kč, 100 Kč, 200 Kč, 500 Kč, 1,000 Kč and 5,000 Kč were introduced later in 1993 and are still in use at present – except for 20 Kč, 50 Kč and the first versions of 1,000 Kč and 5,000 Kč notes, since the security features of 1,000 Kč and 5,000 Kč notes were upgraded in the subsequent issues (The 2,000 Kč note, which was introduced in 1996, is still valid in all versions, with and without the new security features). These banknotes, designed byOldřich Kulhánek, feature renowned Czech persons on the obverse and abstract compositions on the reverse. Modern protective elements can be found on all banknotes.
In 2007, the Czech National Bank started issuing new upgraded banknotes with upgraded security features. These include a new colour-shifting security thread, additional watermarks and EURion constellations. The first denomination to be issued with the new features was the 2,000 Kč, followed by the 1,000 Kč in 2008, the 500 Kč and 5,000 Kč in 2009 and finally ending with the issuance of the 100 Kč and 200 Kč notes in 2018.
In practice, the 5000 Kč is not commonly found in circulation due to them being prone to misuse or illicit activity (e.g.,money laundering). At the end of December 2023, there were 26 million of those banknotes in circulation. In contrast, the next-highest denomination, the 2000 Kč, is the most widely circulated banknote in the country, with almost 190 million in circulation.[12]
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