Today the central bank governors of Poland, Hungary, the Czech Republic and Romania issued a statement that is clearly aimed at propping up the region's beaten-down currencies.
The statements from the governors were released separately - but were clearly coordinated - and all more or less said the same thing: The recent sell-off in the currencies in the region has been overdone and does not reflect fundamentals.
The currencies of the four countries strengthened on the back of the comments. That said, none of the comments give any details as to what the central banks intend to do if the sell-off continues. Therefore, the statement may not be seen as credible by the markets. Furthermore, the ECB has not issued any statements on the issue so it is unclear whether it is of the same view as the CEE central banks.
