Tank
Czech Republic
The Czech koruna (crown) replaced the Czechoslovak USD/CZK and EUR/CZK exchange rates
koruna at par on 8th February 1993. The koruna has 350 300
been free floating ... fully deliverable and convertible. Spot is SO • SO
liquid in both USD/CZK and EUR/CZK but EUR/CZK is
0 00
the dominant cross with around 85% of transaction
volume. EUR/CZK ... discontinuation of the exchange rate commitment
means that the koruna exchange rate now moves
EUR/CZK implied and historical volatility
according to supply and demand on the foreign
120
exchange market