Czech National Bank

About Czech National Bank

Established on January 1, 1993, after the dissolution of Czechoslovakia. The CNB inherited the Czech portion of the State Bank of Czechoslovakia. The CNB successfully managed the transition from communism to a market economy. It maintained conservative monetary policy and built strong foreign exchange reserves. The CNB pioneered exchange rate commitment as an unconventional monetary policy tool, capping the koruna at 27 per euro from 2013 to 2017 to prevent deflation. The bank removed the cap in April 2017, allowing the koruna to appreciate. The CNB manages the financial stability of the Czech Republic and supervises banks, insurance companies, and pension funds.