The national currency of the Czech Republic is the koruna. The word "koruna" itself, translated from Czech, means "crown", symbolizing the once unshakable and inviolable power of the monarch. After the "velvet" separation, when the Czech Republic became a separate state in 1993, a new coin appeared. It signified the country's independent path of development, its originality and independence. Despite the fact that the currency currently occupies a leading position in the European economy, the path of its formation was long and difficult.
History of the Czech crown
The Czech crown as a national currency appeared only in the 20th century, but its earliest examples date back to the founding of the Kingdom of Bohemia in the 12th century. This state entity was located on the territory of modern-day Czech Republic and neighboring countries.
In the early Middle Ages, in 955, the first state coin was introduced into circulation - the silver dinar. It was borrowed from neighboring states, in particular the Frankish Empire. However, later the rulers of the Bohemian Kingdom began to add copper to the alloy, which led to the deterioration of the coin. They began to quickly become thinner, losing half of their weight. To prevent the decline of the authority of his state, King Přemysl Otakar began minting coins of a new design in 1210. They depicted the mighty Bohemian lion. They were made of thin plates of silver, and the coins were surprisingly strong, so they were in circulation for more than a hundred years.
With the beginning of the reign of King Charles IV, the situation changed somewhat. In the city of Hall, new silver coins, called hellers, became popular. They were in circulation in the territory of modern Bohemia and Germany until 1882.
At the end of the 19th century, the Czech Republic was still part of the Austro-Hungarian Empire. The government decided to introduce a new monetary unit. It was called the “krone” and was the prototype of the modern one. It was divided into 100 hellers. In Czech, the word “krone” (crown) meant not only the state currency, but also the crown itself - a symbol of royal power and stability. And in 1919, this currency was adopted by the newly formed state of Czechoslovakia. Coins were minted and banknotes were printed with the designation Kronen.
During World War II, Czechoslovakia was part of Germany. During the occupation period, new money was introduced on its territory - Slovak crowns and Bohemian and Moravian crowns. This money was in demand for several years after the fall of the occupation regime. This significantly complicated all types of payments in Czechoslovakia, so by 1952 the need for monetary reform had become apparent.
In the early 1950s, when Czechoslovakia joined the socialist camp, the sole national currency became the Czechoslovak koruna, which had existed before World War II.
With the independence of the Czech Republic in 1993, the National Bank was established, and the modern Czech crown entered circulation. It symbolized the economic independence of the Czech Republic. And two years earlier, Czechoslovakia had split into two states – the Czech Republic and Slovakia. Since then, each of these republics began to mint its own money.
Appearance of the Czech crown
Each Czech coin and banknote has a unique design that reflects the historical and cultural heritage of the Czech Republic. They are considered the most beautiful in Europe. There are Czech coins in denominations from 1 to 50 CZK and banknotes from 100 to 5000 CZK. All of them are unique monetary units that emphasize the national identity of the country.
Banknotes
The design of the banknotes was developed by the artist O. Kulhanek. The theme of the Czech crown combines a subtle understanding of ancient traditions and modern technologies. The banknotes of the crown depict prominent Czechs - people who have left a noticeable impact on the history and culture of the state. These are princes, writers, scientists. The reverses feature images of ancient temples, cathedrals, and royal coats of arms. The color of the banknotes is very diverse - green, orange, brown, gray, and purple. The banknotes are decorated with: King Charles IV, the humanist educator Comenius, and the historian Palacký.
Coins
Czech coins are historical symbols that inspire and instill pride in the glorious past of the state. They emphasize the spiritual integrity of the people, who honor and respect their roots and cultural heritage. Depending on the denomination, they come in golden, silver and copper colors. The color is obtained by electroplating various metals, most often zinc, nickel, copper. The obverse of the coins depicts the denomination numbers and important symbols and places for the state: the crown of St. Wenceslas, the Cathedral in Brno, Charles Bridge in Prague. The reverse has the inscription Ceska Republika, as well as an image of a lion.
Interesting facts about the Czech crown
- The largest Czech banknote is the 5,000-crown note, which depicts former Czechoslovakian President Tomas Masaryk.
- The smallest denomination is 1 kroon. The coin depicts the state coat of arms with a lion.
- During the interwar period, Czechoslovak crowns contained inscriptions in two languages – Czech and Slovak.
- The 2,000-krona banknote is unique. It features an Art Nouveau ornament, which was popular in the 19th and 20th centuries.
- In 2008, the Czech koruna became the strongest currency in Central Europe and strengthened significantly against the euro and dollar.
- The Czech Republic planned to switch to the euro currency in 2010, but abandoned it. About 70% of Czechs support keeping the koruna.
- In 2019, the Czech National Bank issued a silver coin with a denomination of 1,000 crowns in honor of the 100th anniversary of the Czechoslovak crown.
Czech crown in the foreign and domestic economy
The Czech crown is a symbol of economic independence, which plays a key role in the domestic economy and has a significant impact on the international arena. It is one of the most reliable currencies - it received the highest ratings from financial experts in the world. Even the deep crisis of 2008 could not break the Czech crown. Banknotes have suffered a strong depreciation, but have not lost their importance.
The Czech Republic deliberately refused to switch to the euro, retaining the koruna as its national currency. The state has the ability to flexibly respond to the external and internal situation, regulating inflation and the exchange rate. The Czech koruna continues to enjoy the trust of international investors due to the stable economy of its country.
In addition, the Czech Republic has one of the lowest levels of public debt in Europe. And in periods of economic instability, the Czech koruna has proven its resilience, which has increased its role in the external economy.
The Czech koruna began its journey as a national currency in 1919, undergoing many transformations but managing to retain its value. The history of the koruna encompasses various periods of economic reforms, political changes, and social upheavals. It is these events that have helped cement its powerful status.
As of today, the Czech crown is actively used in trade, and its appearance is evidence that currencies can be not only an object of monetary circulation, but also a sign of the state, history, and art, which are combined together.
