SHOTLIST Prague - August 25, 2011 1. Wide of Old Town Square 2. Close-up of woman taking picture 3. Close-up of exchange board at money changing kiosk 4. SOUNDBITE: (English) Shumei Wang, Prague tourist from Florence, Italy: (speaking about what she could afford if the koruna wasn''t so strong) "Oh, maybe some ceramic and crystal that is famous in this city or maybe more museums, more concerts." Plzen - August 26, 2011 5. Wide of bottling plant at Pilsner Urquell brewery 6. Close-up of bottles of beer 7. SOUNDBITE: (English) Jiri Mareck, Spokesperson for Pilsner Urquell Brewery: "You have a fixed exchange rate at a certain time as a big company, so it shouldn''t be affecting our sales that much." Prague - August 25, 2011 8. Pan of Czech koruna bills 9. Wide of traders at Patria Direct 10. Close-up of trader 11. SOUNDBITE: (English) Petr Zabza, Senior Trader at Patria Direct Brokerage: "There is a similarity in terms of being a relatively stable currency in a country run by a relatively stable government." 12. Various of Czech koruna bills and euro bills 13. SOUNDBITE: (English) Petr Zabza, Senior Trader at Patria Direct Brokerage: "I think indeed the dynamics of the strengthening will definitely slow down considering that the biggest trading partner to the Czech Republic is Germany, is slowing down as well and in turn taking down all of the business partners with it, so the dynamics will be slower that is for sure, but we do expect that the Czech koruna will get stronger over time." 14. Petr Zabza talking on trading floor STORYLINE: As the Eurozone grapples with a debt crisis there has been some speculation that currencies, such as the Czech Republic koruna, could be a safe harbour for investors. Prague, the Czech Republic''s capital, enjoys throngs of tourists every year and it is their money which helps keep the economy humming. But, for foreigners looking to bag a bargain, the stronger koruna has meant less spending power. Shumei Wang from Florence in Italy, said she could have used the extra cash to spend on "some ceramic and crystal that is famous in this city or maybe more museums, more concerts." Exporters are also struggling as their products become more expensive, unless, like Pilsner Urquell brewery, they are trading at a pre-established exchange rate that shelters them from the koruna''s rise. The koruna was up 2.4 per cent against the euro in 2011. This rise in valuation is leading some traders to compare the koruna to the perennially strong Swiss franc as a basis for investing. "There is a similarity in being a relatively stable currency in a country run by a relatively stable government," said Petr Zabza, Senior Trader at Patria Direct Brokerage. Although Pilsner Urquell and other Czech companies must keep an eye out for the overall slow down of the Eurozone and its major trading partners, says Zabza, he adds that he still does believe the koruna will strengthen further. "The dynamics will be slower that is for sure, but we do expect that the Czech koruna will get stronger over time." The Czech Republic could take on the euro as its currency as early as 2015, but Czech Republic officials won''t say that is a certainty nor commit to a particular date for adoption. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/72614e3a3aa2bf11593ad2880f77d4b3 Find out more about AP Archive: http://www.aparchive.com/HowWeWork

• published: 30 Jul 2015
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