The Euro Changeover Timetable in the Czech Republic

 

The euro will be implemented in the Czech Republic in a single-step, also known as the “Big Bang” scenario. This means that the euro will be introduced simultaneously in cash and non-cash transactions. The changeover to the euro can be divided into five phases, the sequence of which is illustrated in the following diagram.

The Euro Changeover Timetable in the Czech Republic

Phase 1 – PRE-PREPARATION PHASE

This is the period between the Government setting a fixed date for adoption of the euro and the European institutions deciding that the Czech Republic has fulfilled all of the Maastricht conditions for adoption of the euro. This phase can be characterised as follows:

  • The Czech koruna is the only legal tender and is used for all activities.
  • Intensive technical preparations for implementing the euro are in progress.

Phase 2 – PREPARATION PHASE

This period begins with the decision to abrogate the derogation from adopting the euro and ends with the euro area entry date. The approximate length of this phase will be six months. If the Czech Republic fulfils the stipulated euro adoption criteria, the Council of the EU then determines the official conversion rate in the form EUR 1 = CZK XX.XXXX. This phase can be characterised as follows:

  • The Czech koruna remains the only legal tender and is used in all payments.
  • Dual pricing is enacted, i.e. certain prices and amounts are displayed simultaneously in korunas and euros using the conversion rate (for example, prices of goods in shops and restaurants, wage slip information, bank statement balances).

Phase 3 – DUAL CIRCULATION PERIOD

The National Plan envisages two full calendar weeks for this period. During this phase, euro notes and coins will be introduced into circulation and the koruna will be gradually withdrawn from circulation. This phase can be characterised as follows:

  • Both the Czech koruna and the euro may be used for making cash payments; retailers, however, will be required to give change to customers in euros only.
  • Non-cash payments must be made in euros only.
  • Dual pricing continues.

Phase 4 – PERIOD UNTIL THE TERMINATION OF DUAL PRICING

This phase will last until the end of the calendar year of the changeover, when the National Plan anticipates the end of the dual pricing obligation. This phase can be characterised as follows:

  • The euro is used for all transactions.
  • The Czech koruna can be exchanged for the euro in banks and branches of the Czech National Bank for at least six months.
  • Dual pricing continues to be obligatory.

Phase 5 – FINAL PHASE

In the final phase, all transitional measures are ended and the euro circulates as a regular legal tender. General public continues to become more comfortable with using the new currency and use euro notes and coins routinely. This phase can be characterised as follows:

  • Czech korunas can be exchanged for euros only at branches of the Czech National Bank.
  • Mandatory dual display of prices is ended.