Go slow on euro

The new head of the National Bank of Poland, Sławomir Skrzypek, said that Poland should not set a target date for adopting the euro. "There is no sense in giving a [eurozone] entry target date," Skrzypek told reporters, adding that the central bank needed to do more research on the single currency's costs and benefits.

Skrzypek, whose appointment was confirmed by parliament last week, also said that he would not make political appointments at the bank and denied rumors that he was considering freeing up part of Poland's forex reserves.

Poland agreed to adopt the euro when it joined the EU in May 2004. But the current government has resisted setting a target date, despite past assurances from the bank that the single currency would benefit the economy. Skrzypek's predecessor, Leszek Balcerowicz, was an advocate of swift euro adoption.

With only an MBA, Skrzypek's qualifications have been questioned. Moreover, as a close ally of the Kaczyński twins, his appointment has led to concerns about the central bank's independence.

Skrzypek has tried to allay such fears, however. "I do not foresee any appointments for political parties," he said. "I will take care of the independence of the central bank. I will make decisions based on merit."

Skrzypek denied a media report that he had said he might consider freeing up part of the bank's currency reserves. "I did not say that I am considering freeing the currency reserves," he said, but added: "The way they are held requires consideration."

Analysts said Skrzypek's comments were positive, but concerns about his plans remain. "Skrzypek lacks credibility and the suggestion he will look into how official reserves can be used adds to future headline risk for the złoty," said Lucy Bethell, an analyst at Royal Bank of Scotland. (Reuters)