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Prague was an important seat for trading where merchants from all of Europe settled, including many Jews, as recalled in 965 by the Hispano-Jewish merchant and traveller Ibrahim ibn Ya'qub. In 1257, under King Ottokar II, Malá Strana ("Lesser Quarter") was founded in Prague on the site of an older village in what would become the Hradčany (Prague Castle) area.He began construction of the Gothic Saint Vitus Cathedral, within the largest of the Prague Castle courtyards, on the site of the Romanesque rotunda there.Prague was elevated to an archbishopric in 1344, the year the cathedral was begun. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its larger urban zone is estimated to have a population of 2.2 million.
The city has a temperate climate, with warm summers and chilly winters.
The city had a mint and was a centre of trade for German and Italian bankers and merchants.