Devizák

Devizák is a colloquial Czech term for foreign currency, typically cash held in currencies other than the Czech koruna (CZK). In everyday language it refers to banknotes and coins in euros, dollars, pounds, and other currencies, as well as to the broader concept of foreign exchange. The term derives from devize or deviza, longstanding banking terminology for foreign currency and foreign-exchange operations.

In banking and finance, the related formal terms include devizový účet (foreign-currency account) and devizové operace (foreign exchange operations), which cover buying and selling currencies, transfers, and hedging, as well as the settlement of international payments. The exchange rate is determined by market forces and by rates offered by banks, typically with a spread.

Regulation: In the Czech Republic, foreign-exchange activities are regulated by law and supervised by the Czech National Bank. Licensed financial institutions provide devizový servis, and cash exchanges are subject to anti-money-laundering rules and reporting requirements for large sums; banks keep records and report suspicious transactions as required.

History: Under the former Czechoslovak and communist regimes, foreign exchange was tightly controlled with limits on exchanging koruna for foreign currencies and on capital movements. Since the transition to a market economy, exchange services have become more liberal, though the koruna remains the legal tender and foreign-currency transactions are regulated for consumer protection and financial stability.

Notes: The term devizák is informal and mainly used in spoken language. In formal contexts the specific terms devizový účet or devizové operace are preferred.