Economy
22:53 27 April 2021
Post by: WBJ

NBP supports exports by weakening zloty

NBP supports exports by weakening zloty
Source: eNewsroom

Already at the beginning of the Covid-19 pandemic, the National Bank of Poland took steps to support the Polish economy in times of crisis. One of them, although not entirely understood at first glance, helped the export sector a lot in rebounding. It seems that the central bank will continue this policy not only in Poland but also in world markets. It will want to support exporters. So far, this action has been producing good results. Polish exports began to recover quite quickly.

"Of course, we observed a series of interest rate cuts, but this is not the only activity carried out by the central bank. The NBP stands on the side of exporters and supports them with a favorable exchange rate. Especially at the end of 2020, we had to deal with currency interventions that weakened the zloty. The weaker the zloty, the greater the revenues from exports," Grzegorz Sielewicz, chief economist of Coface, said.

"Using the research conducted among exporters by the NBP, it can be estimated that the highest level of the currency value at which export ceases to be profitable is PLN 4.07. So we are currently at a safe level with a price of around PLN 4.60 per €1,” he added.

“However, there will be certain periodic factors that will harm the exchange rate. For example, the situation of the banking sector, the issue of solving the matter of Swiss franc loans. This may mean that, despite the actions of the NBP, temporary fluctuations and fluctuations in the exchange rate will be visible," Sielewicz predicted.

(eNewsroom


nbp
exports
coface
pandemic
pln
grzegorz sielewicz

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