The prime minister says the zloty is strengthening. “We will do everything to make the zloty a bit stronger”

– We will do everything in communication and in our real actions to make the zloty a bit stronger – Prime Minister Mateusz Morawiecki said in Gdańsk on Monday. The market reacted to these words in the opposite way than to Adam Glapiński’s Friday interview for PAP. From the words of the NBP president, the market understood that there would be no intervention in the market.

  • Prime Minister Morawiecki indicated that the government would do everything to “strengthen” the zloty a little
  • He indicates that weaker zloty is good news for exporters
  • This reversed the situation on the market, which overestimated the zloty due to the words of the NBP governor about no intervention
  • You can find more such stories on the Onet homepage

– We will do everything in communication and in our real actions to make the zloty a bit stronger – said the head of government. He added that the weak zloty is favorable for exporters.

– But for all those who have a debt in a currency, and in particular for the Polish budget, which is partially denominated in foreign currenciesthis is not good – the prime minister said.

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He did not mention that this is also not good for the price of imported goods, i.e. oil and gas. And this then translates into fuel, electricity and heat prices.

The Prime Minister emphasized that he hoped that the situation on the currency market would stabilize in the next few quarters. After these words, the zloty exchange rate, which previously weakened significantly on Monday, suddenly turned back. From the level of PLN 4.72 per euro and PLN 4.18 per euro, it suddenly fell to PLN 4.69 per euro and PLN 4.16 per dollar, i.e. to levels not much higher than on Friday.

Glapiński: Our reaction is hard to expect

“The exchange rate of the zloty is floating and if the market factors speak in favor of changes in the exchange rate, especially if they are not too strong, then it’s hard to expect our reaction “ – NBP president Adam Glapiński wrote for PAP Biznes on Friday.

“Exchange rate changes are natural. We reserve the right, however, to conduct foreign exchange interventions, but we do not conduct them without a clear need” – he added, pointing out that this year the NBP did not intervene and that it cannot be said that the bank prefers the weak zloty.

See also: The secret of the Ukrainian hryvnia exchange rate. One of the strongest currencies in the world

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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