Prague City Hall has closed 11 exchange offices, but only on city-managed property

Dishonest exchange offices are vanishing from city property, but still can be found on private property, Prague City Hall has closed 11 exchange offices so far. This includes offices that were recently shuttered in Old Town Square, Můstek, and Wenceslas Square.

“Exchange offices in the premises of the Prague Public Transit Company (DPP) were closed after mutual consultation. Those that were in municipal buildings have all been terminated,” City Councilor Jan Chabr, (United Force for Prague), responsible for city property, said, according to daily Pražský deník.

Prague Mayor Zdeněk
Hřib (Pirates) said the exchanges used deceptive practices. The city
is powerless over offices housed in private property, though, as it
can’t intervene in private leases. The city also cannot regulate
the offices, as the Czech National Bank (ČNB)
is responsible for oversight.

“I am not afraid of having a currency exchange in municipal buildings. The problem is that many of them were dishonest. I understand it’s like any business. As the owner of the building, the city has the right to determine what kind of business it wants in its property,” Chabr said. The city does not want Prague to show a bad face to foreign tourists, he added.

People who are not
yet familiar with the exchange rate might easily be fooled by signs
saying there is no commission, but offering only 17 CZK per euro,
when the actual rate is closer to 26 CZK per euro. Hidden fees and
service charges are still common, despite recent attempts by the
Czech National Bank (ČNB)
to crack down.

Posting
VIP rates is also now banned, as this also causes confusion. The
signs can still commonly be found.

In
theory, the ČNB could withdraw licenses from repeat offenders. Some
exchange offices are getting around this by technically shifting
their ownership to a new company after a violation. This allows the
same location to stay open, even with the same staff and décor, but
a clean business record.