This week, the central banks of the Czech Republic, Hungary, Poland, and Romania released a joint statement on the depreciation of each country’s currency against the euro. They cited “high current account deficits, export-dependent economies facing a sharply falling demand from Europe and a strong dependence of local banks on their Western European parents” as causes of the regional depreciation. As a result, the central banks find that exchange rate adjustments will be necessary, however “the adjustment should be a reasonable one the more so as supportive actions have already been initiated” in Western Europe, their major export market. The central banks are, therefore, “ready to take action if necessary to prevent disruptive movements” in exchange rates.