International fears and Miller comments cause panic selling of the zloty

The zloty lost more than 4% of its value against the dollar and the euro on Friday, weighed down by worries about the country's economic prospects. Panic selling by foreign and domestic investors pushed the zloty to 4.32 against the dollar, its lowest level this year. With foreign investors rapidly backing out of all emerging market currencies, the zloty's slide was matched by selling of other Eastern European currencies. On the domestic front, comments by left-wing opposition leader Leszek Miller, tipped to be prime minister after the September 23 poll, that Poland was near a financial crisis stirred unrest among portfolio investors. In another remark which worried investors, Miller said that if elected he would propose legislation to enable the government to share responsibility with the central bank for targeting inflation. At present, the National Bank of Poland (NBP) and the rate-setting Monetary Policy Council (RPP) are fiercely independent. (Prawo i Gospodarka, July 7-8, p. 1; Reuters) T.J.