Falling zloty expected to reach Belka's "desirable" level by month's end

Analysts are predicting that the zloty will fall in value during February, to end the month near the 4.25 to the dollar mark, and at about 3.65 against the euro. While the huge diversity of the predictions reflects uncertainty about the domestic economic situation, the experts polled by Puls Biznesu generally believe that the large supply of treasury bonds, the drying up of privatization revenues and the likelihood there will be no more interest rate cuts will combine to push the zloty down. After recent significant falls in value caused by the withdrawal of serious foreign players from the domestic bond market, the zloty has reached 4.2144 against the dollar, 5% down from December. Finance Minister Marek Belka is on record as stating that a level "desirable for economic progress" would be 4.25 to the dollar. (Puls Biznesu, pp. 1, 19; Prawo i Gospodarka, pp. 1, 3, 21) M.K.