Tuesday, 13 January 2026
The Czech National Bank recorded a loss of CZK 72.9 billion in 2025, according to its preliminary balance sheet released on Thursday. The result follows a record profit in 2024 and was primarily driven by the sharp strengthening of the Czech koruna against major currencies, particularly the US dollar.
The central bank said that the koruna’s 14.8% appreciation against the dollar significantly reduced the value of its foreign assets, leading to a CZK 223.6 billion decline in asset valuation. This currency effect was the main factor behind the negative annual result, despite strong investment performance in the bank’s foreign exchange reserves.
Costs associated with the execution of monetary policy also weighed on the outcome, amounting to CZK 100.3 billion. However, these expenses fell by CZK 44.7 billion year on year, reflecting the gradual reduction in key interest rates over the course of 2025.
At the same time, returns on foreign exchange reserves reached a record CZK 252.8 billion, supported by favourable developments in reserve currencies, where assets appreciated by 10.3%. Reserve income increased by nearly CZK 92 billion compared with the previous year. According to the CNB, higher exposure to equities and additional gold purchases contributed to the strong investment performance.
The central bank noted that exchange rate movements were decisive for the final outcome. Had the koruna remained at its level from the beginning of the year, the CNB would have reported a profit of approximately CZK 150 billion.
The 2025 loss deepened the CNB’s accumulated negative result from previous years, which stood at CZK 277.2 billion at the end of the year. The bank stressed that the published figures remain provisional and do not yet include all accounting operations for 2025. The final, audited financial results are expected to be released in the spring.
The CNB has repeatedly emphasised that generating profit is not its primary objective. Its core mandate remains maintaining price stability and safeguarding financial stability, alongside managing currency issuance, payment systems and oversight of the financial sector.
Source: CTK
