According to the attached analysis of the chief economist of Česká spořitelna, the Czech National Bank is close to taking its decision on a so-called exit, i.e. termination of its exchange rate commitment to keep the Czech crown against the Euro close to the level of CZK/EUR 27. The exit could take place in Q2 2017 and afterwards the exchange rate of the crown could be strengthened by 3-4 %.

Erste Private Banking now prepared a new, almost four-month investment certificate with 3 % yield, i.e. more than 9 % p.a. for investors interested in investing in Czech crowns. The maturity of the certificate is 1 June 2017, which is in line with the exit expectations and hereby brings a chance for additional appreciation.

The underlying asset of the certificate are the shares of the company ČEZ. It is the biggest energy company in Central and South-eastern Europe and from the perspective of market capitalisation, it ranks among the biggest and most successful European companies in general. In case that during three months the value of shares increases or stays at least at the same level, apart from the coupon, the investor will also get back 100 % of its investment in CZK. If the value of shares declines, the investor will get the corresponding number of shares in ČEZ and partial financial compensation. However, in such case the investor may also gain dividends for 2016 provided that the payment of dividends is approved by the Board of Directors of the company ČEZ.

The sale of ČEZ investment certificate will take place in the period from 06/02/2017 to 08/02/2017 and in case of interest in further information, please do not hesitate to contact your private banker.