Financial analysts dismiss President Zeman’s claim that the Central Bank may have protected its own interests through forex interventions

Financial analysts have dismissed as nonsensical President Zeman’s claim that the Czech National Bank may have devaluated the Czech crown with the intention to delay the country’s entry to the Eurozone. President Zeman said at a press briefing in Prague on Thursday evening that the bank may have taken this step because after the adoption of the euro the Czech central bank would automatically cede a significant part of its powers to the European Central Bank. The bank board members have refused to comment, but financial analysts have dismissed the notion pointing out that the board members term in office would expire before the country could join the euro anyway.

The Czech National Bank launched forex interventions in November of last year citing the need to avert the threat of deflation. It plans to continue the interventions until 2016. The move has come under fire from a number of economists and has repeatedly been criticized by the president.