Lying in the central parts of the once Bohemia, Moravia, and Czech Silesia is the Protectorate of Bohemia and Moravia. It was an autonomous region formed on March 15, 1939, by Nazi Germany, as proclaimed by Adolf Hitler from Prague Castle. Bohemia and Moravia were considered the Greater German Reich. Its population consisted of mostly ethnic Czech.
In 1939, the Bohemian and Moravian koruna, subdivided into 100 haleru, was introduced as the territory’s official currency replacing the Czechoslovak koruna. Its first banknotes were the unissued notes produced by the Czech military in 1938. These notes were overprinted with Protectorat / Bohem / und Mahren / Protectorat / Cehy a Morava.
Banknotes in the denominations of 1, 5, 50, and 100 koruna were introduced on February 9, 1940. A common design element of these banknotes was the coat of arms of Bohemia. The 10 korun that reflected a portrait of a young girl with braided hair on the obverse and national emblem, was released in 1942. 100 and 500 korun banknotes were also added into circulation and in 1944, a 5000 korun denomination was introduced.
Although Czech professionals and workers, as well as established firms, were obliged to support the German war economy during World War II, the nation’s economy remained unperturbed until the end of the war. It was because Bohemia and Moravia were far from reach from bomb attacks by the Allied Bombers.
Following Germany's surrender to the Allies, Bohemia and Moravia ceased to exist in 1945 and the legal tender was replaced by Czechoslovak koruna.
Bohemia and Moravia is now the modern-day Czech Republic. Its economy is export-oriented and is high-income. It relies primarily on foreign trading, hence its financial status is dependent on the economic performance of its foreign market, mainly on Germany. When the German and the rest of Western European markets suffered from the financial crisis in 2008, there was a low demand for Czech goods. This resulted in a plunge in industrial production and foreign trading which led to a drop of its GDP to 4.1% in 2009.
Czech’s auto industry is also a major contributor to its GDP. One of the most significant industries in the country, the automotive sector produces more than 20% of its volume. In 2010, the country manufactured over a million cars and exported 80% of them. As of 2017, it has manufactured more than 1.3 million passenger cars a year. That means, it produces 1 car every 23 seconds.