Czech Koruna

Name of currency: Czech Koruna

Country / countries used: Czech Republic


Brief history:

A currency named Krone in German meaning ‘crown’ and koruna in Czech with the same meaning, was first implemented in Austria/Hungary in 1892 at the new modern ‘gold-based’ monetary system locally. Following Czechoslovakia’s independence in1918 the need for a brand new separate currency presented itself as they would need to differentiate themselves against other new countries and their foreign currencies that were suffering from inflation.

And so the Czechoslovak Koruna was brought in 1919 on an equal par to the Austro-Hungarian krone in terms of money exchange with the original banknotes being produced that year but official coinage wasn’t until 1922.

Except for a brief blip between the years 1939 and 1945, when separate currencies were implemented for the 3 main areas Bohemia, Moravia and Slovakia equally matching the koruna in terms of money exchange, the Czechoslovak koruna remained in place until 1993.

During this time was the lead up to the splitting of Czechoslovakia into the two countries we now today. Following the ‘Munich Agreement’, the Polish takeover of Zaolzie and the German occupation of Czechoslovakia and the subsequent disillusion of the Western response as well as the appreciation for the newly found liberty for the chief share of Czechoslovakia from the Red Army resulted in the Communist Party of Czechoslovakia winning a majority vote in the national elections in 1946. In the 1948 revolution, Czechoslovakia became a communist-ruled state and the subsequent increasing discontent concluded in efforts to transform the communist regime in 1968. The events of 1968, now referred to as the Prague Spring, concluded with an offensive from the armies a party to the Warsaw Pact (all bar Romania); these armed forces stayed in the country right up until the ‘Velvet Revolution’ of 1989, which was when the communist command finally buckled. And in January 1993, Czechoslovakia peacefully disbanded into its fundamental states know known as the Czech Republic and the Slovak Republic

The modern-day Czech Koruna came into place to substitute the Czechoslovak Koruna in 1993 when Czechoslovakia was dissolved, to start with them simply ‘over-stamping’ the old banknotes introducing the new versions later on its symbol Kč is placed after the numerical value.

Recent plans to join the euro scheme where suspended in 2007 due to internal opposition to the change as opposed to the country’s economic placing, which is actually well positioned when it comes to adopting the euro.