The Treasurer’s Guide to Trade Finance

Czech Republic

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 217 bn Goods Exports 131

GDP per capita (USD) 20,615 Imports 127

GDP volume growth (year-on-year) + 1.9% Net + 4

Population 10.53m Services Exports 24

MMR (end period) 1.17% Imports 19

Exchange rate CZK / USD (year average) 17.696 Net + 5

BoP (goods, services & income) as % of GDP – 3.0% Source: IFS, IMF, January 2013

International/Regional memberships

European Union (EU): since 1 May 2004.
The Czech Republic is also a member of the
European Economic Area (EEA).

International Monetary Fund (IMF):
since 1 January 1993.

World Trade Organization (WTO):
since 1 January 1995.

Government trade policy

ƒ The Czech Republic implements the EU’s
trade regulations, commercial policies and
customs code (ec.europa.eu/trade).

ƒ The Czech Republic trades freely with fellow
EEA member states as well as Switzerland.

ƒ The EU has in place bilateral trade

agreements with 36 countries and regional

trade agreements with a number of trading

blocs.

ƒ National export credit insurance provider:

Export Guarantee and Insurance

Corporation (EGAP — http://www.egap.cz).

ƒ EGAP, the Ministry of Industry and Trade

(www.mpo.cz), the Czech Export Bank

(www.ceb.cz) and the national trade

promotion agency, CzechTrade

(www.czechtrade.cz), together take part in

the state export support programme.

ƒ The EU maintains 74 free trade zones, with

ten located in the Czech Republic.

Currency and exchange controls

Official currency: Czech koruna (CZK).

Exchange rate arrangement: free floating,
but the Czech National Bank (www.cnb.cz) is
permitted to intervene to control volatility in
the exchange rate.

ƒ The Czech Republic imposes few foreign
exchange controls. Controls are imposed by
CNB and the Ministry of Finance
(www.mfcr.cz).

ƒ The Czech Republic applies controls to
financial credits from residents to non-
residents if they represent part of a resident
insurance company’s technical reserves, or if
they are granted by resident private pension
funds to non-residents other than OECD
member state governments or central banks.

Bank accounts

Permission to hold currency accounts

Within the

Czech

Republic

Outside

the Czech

Republic

CZKForeign currency CZKForeign currency

Resident

company ✔ ✔ ✔ ✔

Non-resident

company ✔ ✔ ✔ N/A