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London-based currency manager Record Plc. says the currency of the Czech Republic might become the new safe haven for currency traders if the Swiss National Bank takes more aggressive measures to control the franc.This has become a very hot topic. Yesterday we mentioned the increased interest in Norwegian and Swedish currencies as safe havens.
Record CIO Bob Noyen told Bloomberg in an interview, “We’ve exhausted the move in the franc now and we’re looking for other alternatives.” He added, “The market will constantly probe for the next outlet. The Czech koruna and other harder eastern European currencies also have the potential to benefit.”
The Czech Republic is regarded as one of the most stable ex-Soviet countries, with a conservative government and a focus on exports. GDP recovered from a 2009 setback to grow 2.3% in 2010.