Government wants the central bank to allow the zloty to weaken

The government wants to discuss with the central bank the possibility of weakening the zloty, as many argue the zloty is far too strong and is damaging exports. The National Bank of Poland (NBP) believes this is not the right time to intervene on the currency market. Prime Minister Leszek Miller said that the zloty is overvalued and disapproves of the policy pursued by the NBP. "The zloty should be weaker," said finance minister Marek Belka, during a meeting with members of American Chamber of Commerce. The treasury minister said he also wants to discuss exchange rate policy with the Monetary Policy Council (RPP). He added, "I am against a stiff exchange rate". Andrzej Bratkowski, NBP deputy-president told the Polish Press Agency (PAP),"Intervention on the currency market would be ineffective in view of the current situation, because it would endanger the efficiency of monetary policy and cause financial losses to the NBP and the budget". In his opinion the current strength of the zloty is due to the strength of the Euro over the US dollar and to the number of treasury bonds issued. (Rzeczpospolita, p. A1; Gazeta Wyborcza, p. 19) P.W.