About the Czech Koruna
The Czech koruna (crown) is the currency of the Czech Republic, issued by the Czech National Bank. The Czech Republic is an EU member and committed to adopting the euro eventually, but has set no date, so the koruna floats against the euro.
The Czech economy is closely tied to Germany's, especially through car and machinery manufacturing, and most of its trade is with the euro area. That makes EUR/CZK the main reference rate. From November 2013 to April 2017 the central bank capped the koruna at 27 per euro to fend off deflation.
The Czech National Bank targets 2% inflation and its board sets interest rates eight times a year. Haléř coins were withdrawn in 2008, so cash payments are rounded to whole koruna.
Paying in CZK
- Account number format
- Czech account numbers are written as an optional prefix, the account number and a 4-digit bank code, for example 19-123456789/0800. For payments from abroad, use the IBAN, which starts CZ and is 24 characters long, together with the bank's SWIFT/BIC code.
- Variable symbol
- Czech invoices usually carry a variable symbol (variabilní symbol), a number of up to 10 digits that the recipient uses to match the payment, often the invoice number. Put it in the payment reference exactly as given.
- Domestic clearing
- Koruna payments between Czech banks clear through CERTIS, the Czech National Bank's clearing system. Most Czech banks also offer instant payments, which arrive within seconds.
- Koruna is not SEPA
- The Czech Republic is in SEPA, but SEPA covers euro payments only. A payment in koruna is a domestic CZK payment, not a SEPA transfer.
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