PRAGUE (Reuters – Czech central banks may be discussing whether they should make use of their large foreign reserves in order to stabilize exchange rates and fight inflation, JiriRusnok, Governor of central bank Jiri Rusnok stated on Sunday.

To stop a currency drop caused by investors fleeing Ukraine, the bank bought crowns on the stock exchange on March 4.

According to the Russian invasion, there is no target rate and volumes. The action is not intended for currency strengthening. Since the Russian invasion of February 24, almost all its losses against the euro have been recouped.

Rusnok said however that the bank might discuss using the large reserve of money it accumulated between 2013 and 2017 — the time the bank intervened in order to lower the currency — in an effort to bring down inflation.

He stated, “Now we must talk more about the next steps. If we may want to temporarily consolidate the crown, not only because of stability but maybe also to actively utilize the exchange rate for an anti-inflationary instrument.”

It is important to have a discussion on this issue, as it is a complex topic. It is something I can’t exclude for myself.”

Rusnok stated that inflation shocks and the conflict in Ukraine could bring Czech economic growth down to zero before the end of this year, which would make it impossible for Europe to avoid a recession.

Since last year the central bank has taken interest rates up faster than any other banks. The main repo rate was raised to 4.5% by the central bank, signalling an increase.

As of February 31, it had 157.46 trillion euros worth of foreign currency reserves, which is roughly two-thirds of its gross domestic product.