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Division of the Czechoslovak Socialist Republic.



HISTORY OF CZECHOSLOVAK CURRENCY.

After difficult political negotiations, it was decided to divide the Czech and Slovak Federal Republic on January 1, 1993. The Czech Republic was established. As of this date, it was established on the basis of Act No. 6/1993 Coll. The Czech National Bank, which fully complied with the activities of the former State Bank of Czechoslovakia, performing all standard central bank functions in accordance with the Act of December 1991. The division of the common federal republic therefore did not have a significant effect on the transformation of the economic system and banking. The balance sheet of the State Bank of Czechoslovakia was divided between the two successor states. Loans provided to banks (resp. Deposits of banks) were divided territorially according to the registered office of banks, assets or liabilities to the International Monetary Fund in the ratio of 2.29: 1, receivables from the federal budget and foreign exchange reserves in the ratio of 2: 1. The separation of the Czech currency from the former Czechoslovak currency was decided by a special law in February 1993. On this day, the Czech currency was created, the unit of which became the Czech koruna. The changeover to the new currency included mainly:

- transfer of all mutual liabilities and receivables as of this date in a ratio of 1: 1

- stamping of federal banknotes of the highest denominations (100, 500, 1000)

- the physical exchange of banknotes subject to circumvention by residents and non-residents

- preparation of a system of banknotes and coins of the new Czech currency, ensuring their production, partly abroad, their transport, storage and issue into circulation

- withdrawal and destruction of banknotes and coins of the current currency, incl. ringed banknotes
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