Zeman to appoint Rusnok CNB Bank Board member on Wed


04.02.2014 13:57

Prague - President Milo Zeman will appoint Jiri Rusnok, the former prime minister of the Czech caretaker government, member of the Bank Board of the Czech National Bank (CNB) on Wednesday, the presidential office said.


Bývalý český premiér Jiří Rusnok. ČTK Doležal Michal

The appointment of Rusnok in the post was expected.

Rusnok will replace current CNB Bank Board member Eva Zamrazilova whose six-year mandate on the board ends on February 28.

The CNB's Bank Board sets the country's monetary policy and decides on key monetary policy measures.

Since his becoming the president a year ago, Zeman has declared he would appoint Rusnok CNB Bank Board member.

Until the end of January, Runok was the prime minister of a caretaker government which was appointed in summer last year but ruled without confidence from the Chamber of Deputies, the lower house of the parliament.

Rusnok had worked as head of pension fund ING Penzijni fond before he became a prime minister. He was previously also a finance minister and industry and trade minister.

Rusnok will join the CNB's Bank Board at a moment when the board is being criticised by part of economists and politicians for forex interventions which have led to the weakening of the crown.

While Zeman criticised the central bankers' step, Rusnok expressed support to it. He said in November that interventions would help the Czech economy to increase its ability to compete.

The CNB launched the interventions on November 7. with the aim to avert the danger of deflation by weakening the national currency.

The CNB said it wants to keep the crown's rate near Kc27 per euro through interventions. The efforts to keep the crown near this level will last for at least a year and a half, CNB governor Miroslav Singer said.

The board has seven members. Another change to the board can be made in July 2016 when the mandates of governor Singer and member Kamil Janacek end.

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