By: The Quinnipiac University Economics Research Team, Niamh Savage
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.
The currency trends starting September 18th show a clear decline in the value of the majority of CEE currencies. The largest decrease, at the end of the period, was in the Polish Zloty (red line); this shows a weakening of the domestic currency. The Czech Koruna (blue line) ended with an increase. Therefore, it was the only country where the domestic currency strengthened. Throughout the period, however, the value of CEE currencies did trend upwards after September 27th.
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.
During this time period, the Hungarian Forint remained outside of its historical range. The Czech Koruna began outside of its historical range, but it increased above its lower boundary mark. The exchange rates for the Polish Zloty and the Romanian Leu began inside their historical range, and the exchange rates decreased beyond their county’s lower boundary.