Czechoslovak koruna
Encyclopedia
The Czechoslovak koruna (in Czech
and Slovak
: Koruna československá, at times Koruna česko-slovenská; koruna means crown) was the currency
of Czechoslovakia
from April 10, 1919 to March 14, 1939 and from November 1, 1945 to February 7, 1993. For a brief time in 1939 and 1993 it was also the currency in separate Czech
and Slovak
republics.
On February 8, 1993 it was replaced by the Czech koruna
and the Slovak koruna
, both at par.
The (last) ISO 4217
code and the local acronyms for the koruna were CSK and Kčs. One koruna equalled 100 haléřů (Czech, singular
: haléř) or halierov (Slovak, singular: halier). In both languages, the abbreviation h was used. The acronym was placed behind the numeric value.
in German
was introduced in Austria-Hungary
on 11 September 1892, as the first modern gold-based currency in the area. After the creation of an independent Czechoslovakia
in 1918, an urgent need emerged for the establishment of a new currency system that would distinguish itself from the currencies of the other newly born countries suffering from inflation. The next year, on 10 April 1919, a currency reform took place, defining the new koruna as equal in value to the Austro-Hungarian krone. The first banknotes came into circulation the same year, the coins three years later, in 1922.
This first koruna circulated until 1939, when separate currencies for Bohemia and Moravia and Slovakia
were introduced, at par with the Czechoslovak koruna. These were the Bohemia and Moravia koruna and the Slovak koruna
.
had to deal with the fact that there was a double market in the country: a fixed market ensuring basic food availability – a remnant of the post war quota system, and a free market, in which goods were as much as eight times more expensive but of a higher quality. They decided to declare a currency reform valid from 1 June 1953, and to distribute new banknotes printed in the USSR
. The reform had been prepared very quickly and was confidential up to the last minute, but some information leaked anyway, causing a lot of panic among people. The night before the deadline, the president of Czechoslovakia Antonín Zápotocký
made a radio speech, in which he strictly denied any possibility of a reform and quieted down the inhabitants, though he had to know that he was lying to the nation. The next day, people (that were lucky enough not to fit into the category of "capitalistic elements", a pejorative category to which the intelligence agency used to blacklist certain individuals) were allowed to change up to 1500 old korun for new korun at the rate of 5 old to 1 new koruna and the rest at the rate of 50 to 1. All insurance stock, state obligations and other commercial papers were nullified. The economic situation of many people got worse insofar as many petitions and demonstrations broke out, the largest of which took place in Plzeň, where 472 people were arrested.
In 1993, in accordance with the dissolution of the Czechoslovak federation, the Czechoslovak koruna split into two independent currencies – the Slovak koruna
and the Czech koruna
. Both currencies will be replaced by the Euro
as quickly as their respective countries meet the criteria for economic convergence or there is the political will to do so – the Slovak koruna was replaced by the Euro on 1 January 2009, the latest forecast is for the Czech Koruna to be replaced in 2013.
Czech language
Czech is a West Slavic language with about 12 million native speakers; it is the majority language in the Czech Republic and spoken by Czechs worldwide. The language was known as Bohemian in English until the late 19th century...
and Slovak
Slovak language
Slovak , is an Indo-European language that belongs to the West Slavic languages .Slovak is the official language of Slovakia, where it is spoken by 5 million people...
: Koruna československá, at times Koruna česko-slovenská; koruna means crown) was the currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
of Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...
from April 10, 1919 to March 14, 1939 and from November 1, 1945 to February 7, 1993. For a brief time in 1939 and 1993 it was also the currency in separate Czech
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
and Slovak
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
republics.
On February 8, 1993 it was replaced by the Czech koruna
Czech koruna
The Czech koruna or Czech crown has been the currency of the Czech Republic since 8 February 1993 when, together with its Slovak counterpart, it replaced the Czechoslovak koruna at par....
and the Slovak koruna
Slovak koruna
In 1993, coins were introduced in denominations of 10, 20 and 50 haliers, 1, 2, 5 and 10 korunas. The 10 and 20 halier coins were taken out of circulation on 31 December 2003....
, both at par.
The (last) ISO 4217
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...
code and the local acronyms for the koruna were CSK and Kčs. One koruna equalled 100 haléřů (Czech, singular
Grammatical number
In linguistics, grammatical number is a grammatical category of nouns, pronouns, and adjective and verb agreement that expresses count distinctions ....
: haléř) or halierov (Slovak, singular: halier). In both languages, the abbreviation h was used. The acronym was placed behind the numeric value.
First koruna
A currency called the KroneAustro-Hungarian krone
The Krone or korona was the official currency of the Austro-Hungarian Empire from 1892 until the dissolution of the empire in 1918...
in German
German language
German is a West Germanic language, related to and classified alongside English and Dutch. With an estimated 90 – 98 million native speakers, German is one of the world's major languages and is the most widely-spoken first language in the European Union....
was introduced in Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...
on 11 September 1892, as the first modern gold-based currency in the area. After the creation of an independent Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...
in 1918, an urgent need emerged for the establishment of a new currency system that would distinguish itself from the currencies of the other newly born countries suffering from inflation. The next year, on 10 April 1919, a currency reform took place, defining the new koruna as equal in value to the Austro-Hungarian krone. The first banknotes came into circulation the same year, the coins three years later, in 1922.
This first koruna circulated until 1939, when separate currencies for Bohemia and Moravia and Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
were introduced, at par with the Czechoslovak koruna. These were the Bohemia and Moravia koruna and the Slovak koruna
Slovak koruna
In 1993, coins were introduced in denominations of 10, 20 and 50 haliers, 1, 2, 5 and 10 korunas. The 10 and 20 halier coins were taken out of circulation on 31 December 2003....
.
Second koruna
The Czechoslovak koruna was re-established in 1945, replacing the two previous currencies at par. As a consequence of the war, the currency had lost much of its value.Third koruna
The koruna went through a number of further reforms. A particularly drastic one was undertaken in 1953. At that time, the Communist Party of CzechoslovakiaCommunist Party of Czechoslovakia
The Communist Party of Czechoslovakia, in Czech and in Slovak: Komunistická strana Československa was a Communist and Marxist-Leninist political party in Czechoslovakia that existed between 1921 and 1992....
had to deal with the fact that there was a double market in the country: a fixed market ensuring basic food availability – a remnant of the post war quota system, and a free market, in which goods were as much as eight times more expensive but of a higher quality. They decided to declare a currency reform valid from 1 June 1953, and to distribute new banknotes printed in the USSR
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
. The reform had been prepared very quickly and was confidential up to the last minute, but some information leaked anyway, causing a lot of panic among people. The night before the deadline, the president of Czechoslovakia Antonín Zápotocký
Antonín Zápotocký
Antonín Zápotocký was communist Prime Minister of Czechoslovakia from 1948 to 1953 and President of Czechoslovakia from 1953 to 1957....
made a radio speech, in which he strictly denied any possibility of a reform and quieted down the inhabitants, though he had to know that he was lying to the nation. The next day, people (that were lucky enough not to fit into the category of "capitalistic elements", a pejorative category to which the intelligence agency used to blacklist certain individuals) were allowed to change up to 1500 old korun for new korun at the rate of 5 old to 1 new koruna and the rest at the rate of 50 to 1. All insurance stock, state obligations and other commercial papers were nullified. The economic situation of many people got worse insofar as many petitions and demonstrations broke out, the largest of which took place in Plzeň, where 472 people were arrested.
In 1993, in accordance with the dissolution of the Czechoslovak federation, the Czechoslovak koruna split into two independent currencies – the Slovak koruna
Slovak koruna
In 1993, coins were introduced in denominations of 10, 20 and 50 haliers, 1, 2, 5 and 10 korunas. The 10 and 20 halier coins were taken out of circulation on 31 December 2003....
and the Czech koruna
Czech koruna
The Czech koruna or Czech crown has been the currency of the Czech Republic since 8 February 1993 when, together with its Slovak counterpart, it replaced the Czechoslovak koruna at par....
. Both currencies will be replaced by the Euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
as quickly as their respective countries meet the criteria for economic convergence or there is the political will to do so – the Slovak koruna was replaced by the Euro on 1 January 2009, the latest forecast is for the Czech Koruna to be replaced in 2013.
Consumer price index
| Year | CPI |
|---|---|
| 1980 | 2.9 |
| 1981 | 0.8 |
| 1982 | 5.1 |
| 1983 | 0.9 |
| 1984 | 0.5 |
| 1985 | 2.7 |
| 1986 | 0.5 |
| 1987 | 0.1 |
| 1988 | 0.2 |
| 1989 | 1.4 |
| 1990 | 10.0 |
| 1991 | 57.9 |
| 1992 | 11.0 |
See also
- Czech korunaCzech korunaThe Czech koruna or Czech crown has been the currency of the Czech Republic since 8 February 1993 when, together with its Slovak counterpart, it replaced the Czechoslovak koruna at par....
- Slovak korunaSlovak korunaIn 1993, coins were introduced in denominations of 10, 20 and 50 haliers, 1, 2, 5 and 10 korunas. The 10 and 20 halier coins were taken out of circulation on 31 December 2003....
- Bohemian and Moravian korunaBohemian and Moravian korunaThe koruna, known as the Protectorate crown , was the currency of the Protectorate of Bohemia and Moravia between 1939 and 1945. It was subdivided into 100 haléřů.-History:...