Although Europe appears to losing its battle with the second wave of the coronavirus pandemic, it’s the EU’s smaller, open economies whose currencies are suffering. The Czech koruna has been dropping in value in since the end of August, dropping CZK 0.7 against the euro in that time. Most experts expect this trend to continue, assuming the situation continues to deteriorate. The koruna has been particularly vulnerable since September 8, when the Czech Republic appeared to lose control of the spread of the infection. The government has tried to avoid putting back in place anti-pandemic regulations for as long as possible. Still, bars, clubs and restaurants are again being forced to close at midnight, universities in Prague have reverted to online lessons, and open air events with more than 100 people will soon require masks. Last week, masks became mandatory in all stores. The koruna slipped to CZK 26.80 per euro last week and isn’t expected to improve in the coming days. Having made gains against the dollar since the beginning of July, the koruna has begun falling in value against that currency as well.
