Euro and corporate management in Czech Republic

Abstract

The paper aims to evaluate the attitude of corporate management (not the public opinion) regarding the introduction of the euro in the Czech Republic and to identify the main factors which influence this attitude. We also work on the hypothesis that the attitude to the euro depends on the stability of the CZK/EUR exchange rate and on developments in the Czech foreign trade with the euro area. We collected companies’ opinions on the introduction of the euro from corporate management opinion polls in 2011-2017. The data analysis has concluded that increased fluctuations of the CZK/EUR exchange rate (towards appreciation as well as depreciation) are accompanied with increased interest in the introduction of the euro. It is also the growing volume and share of trading with the euro area which is directly proportional to the growth in companies’ interest in the introduction of the euro.