March 22, 2017 / 1:42 PM / 9 months ago

VW's Skoda expects steady Czech crown after cap ends

MLADA BOLESlAV, Czech Republic, March 22 (Reuters) -

* Volkswagen unit Skoda Auto, the Czech Republic’s biggest company and exporter, expects the crown to remain stable after the central bank lets the currency float freely, a board member said on Wednesday.

* “It is not so good if it fluctuates up and down like crazy ...But nobody anticipates that. There is no reason to see something like that,” Klaus-Dieter Schurmann, Skoda’s board member for commercial affairs, told reporters.

* “The Czech crown, I assume, will be still very, very stable in comparison to other currencies that are more volatile.”

* With inflation back on target, the Czech National Bank has indicated it might do away with a policy introduced in 2013 of keeping the crown weaker than 27 to the euro.

* The cap is expected to end in April or May.

* Skoda is ready for some “normal” fluctuations in the crown, Schurmann said, without elaborating.

* The crown could firm by more than 4 percent against the euro in the next 12 months with the cap removed, a Reuters poll showed this month.

Reporting by Jason Hovet; editing by Jason Neely

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