Czech and Polish current accounts improve significantly
The Hungarian government unveils a new levy on banks
As we had expected the Czech koruna shrugged off the recent political turmoil, which led to resignation of PM Nečas and his centre-right cabinet. Actually the koruna has strengthened as the currency was supported by better-than-expected balance-of-payments statistics in April. Recall that following a huge March’s deficit generated by unusually dividend outflows (CZK 50mn), the Czech current account returned back to surplus. Overall the current account deficit on annual basis hovers at around 2% of GDP, which is definitely not a macroeconomic threat given the fact that foreign companies operating in the Czech Republic still reinvest a significant portion of their earnings.
Read the full report: FX Daily
KBC