Czechs buy Australian dollars

In more poor news, the AFR reports that:

The Czech Republic central bank is buying Australian dollars for inclusion in its foreign exchange reserves.

…According to one trader, the Czech National Bank has been buying Australian dollars in the 2012 calendar year of amounts that add up to between $US500 million and $US1 billion.

Let’s hope they’re ringing the bell at the top.

Comments

  1. DouglasMEMBER

    If the share price performance of Rio and BHP and Fortescue is indicating the future of iron prices say 6 months away then this leaves only copper, agricultural and coking coal to hold our T of T up. Coking coal would surely crack with iron ore which leaves only copper and ag. This would leave the $A fully exposed and held only by the ability of the borrowers to pay the high (Flawse note high in a comparison with the other countries) interest rates which I would doubt.

  2. As per what Douglas said on ToT interest rates etc I found the report really something of a worry for the Czech Central Bank.
    However maybe it’s just a good indicator of how big a mess the world is in if the A$ looks a safe bet by comparison.

    Again, as long as the Money keeps flowing here we’ll be right!! Who cares whither it is Czech, Russian, Chinese or the US just printing up more paper!!! It’s all good!!!!

  3. Whither? Damn how did an e become an i? My left hand must not know what my right hand is doing these days!!!
    I suppose I could say I was meaning whither in terms of ‘from whence’ Yep that’ll do!

  4. I am from Prague, I was buying AUD when one cost 14CZK back in 2008/2009, now I am buying back CZK and USD. Czech central bank is wrong, around 2000 they sold almost all Czech Gold.

    • We should invest in Czech beer – better than the local dishwater that SAB Miller (Carlton) and Mitsubushi Keiretsu (Tooheys) bottle. I can esily share my fridge between Squire 50 Lashes and Staropramen.

      • I think SAB Miller actually own Pilsner Urquell anyway…

        Czechs make good beer, cars and guns…unlike American who make crap beer, huge gas guzzling cars and own way too many guns.

        At least they have a sovereign currency that will let them trade their way out of trouble…unlike most of the EU.

        • Yes the Skoda is way better than anything made in Australia.

          Funny old thing you posted that – I was using a CZ75 at a range yesterday and prior to that hadn’t touched a pistol since I left Her Majesty’s service over a decade ago. Nice piece of kit BTW.

      • Unfortunately it is not true anymore, all big breweries are owned by EU companies, we call it eurobeer. If you visit Czech look for small (local) breweries not for the names what used to be good.