Fears that the superstrong złoty is on the verge of undermining growth

"The złoty is super strong and it is expected that it will further strengthen," said Marcin Bilbin, an analyst with bank Pekao. He went on to say that how high it will rise will depend on a number of factors, such as policy of the Monetary Policy Council (RPP), or the potential intervention of the Finance Ministry on the forex market. Andrzej Sławiński from the RPP told Reuters on Monday that the further growth of the złoty would threaten economic growth. "Investors purchasing the currency are so sure that it will further strengthen that they do not insure against exchange rate risk," said Bilbin. A similar inflow of foreign hedging capital is also being observed in other countries of the region. (Parkiet, p. 1) M.M.