By: The Quinnipiac University Economics Research Team, Kyle Del Balso
Source: Eurostat and own calculations. Exchange rates are inverted to be EURO per local currency (i.e., an increase indicates a stronger domestic currency) and then indexed to be 100 at the start of the period.
Relative to the Euro, all CCE currencies weakened. The Polish zloty and Romanian leu experienced stronger domestic currencies in the beginning of the period but ended the period with a weaker currency. Hungarian forint and Czech koruna steadily lost value in the first half of the period, with both dropping to 2% at its lowest point. Down approximately a quarter of a percent, the Romanian leu was pretty flat the entire period but weakened slightly.
The forint and koruna strengthened following April 23rd but still ended the period losing approximately 1.5% and 1% in value, respectively. The zloty was the only currency that gained value for the majority of the period but ultimately ended with a depreciation of half a percent in relation to the Euro.
Source: Eurostat and own calculations. Exchange rates are inverted to be EURO per local currency (i.e., an increase indicates a stronger domestic currency). The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.
All four countries ended the period more than one standard deviation below their three month average. While the koruna, zloty, and leu finished the two weeks slightly below their initial starting point, the forint had the largest decrease.
As each country continues implementing new strategies and policies to combat the present situation, it is interesting to note that all the currencies have relatively stayed the same or strengthened over the beginning two weeks in April but finished the final two weeks with a weakening in their domestic currency in relation to the Euro.