The Polish zloty declined after the central bank’s intervention to prevent further appreciation, yet the currency remains “too strong” in Deputy Finance Minister’s opinion.
The quick appreciating harmed the Polish exporters by making their goods more expensive worldwide and decreasing the value of their sales in the local currency. To amend this situation the central bank performed its first intervention in 12 years last week. Yet Ludwik Kotecki, the Deputy Finance Minister of Poland, worries that the currency is still too strong.
According to Kotecki: “At this stage of the recovery, the zloty is probably too strong and for sure further appreciation of the zloty should be avoided.” He asserted his support to the central bank’s decision to intervene and voiced hope for success of this intervention.
USD/PLN traded today at 2.8986 as of 16:11 GMT up from it opening level of 2.8784. EUR/PLN traded at about 3.8996 after it opened at 3.8845.
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