Development of the Foreign Exchange Reserves of the Czech National Bank from 1993 to 2022 and Their Impact on the CNB's Operations

The bachelor's thesis focuses on the development of foreign exchange reserves from 1993 to 2022 and analyzes their impact on the use of monetary policy instruments. The impact on the use of these instruments is determined through graphs and tables containing the development of foreign exchange reserves, the average annual inflation rate, and the financial results reported by the Czech National Bank. For a more detailed analysis, the values of the exchange rate of the Czech crown against the euro and the repo rate, or the rate of month-on-month inflation, were used for selected years. The examined period is divided into three parts for greater clarity, and in conclusion, the data is compared as a whole. Based on a detailed examination of this data, it is confirmed that the level of foreign exchange reserves influences the effectiveness of the use of monetary policy instruments. However, it is not clear to what extent, but with a larger volume of foreign exchange reserves, the Czech National Bank has more room to conduct monetary policy.