17:06 24 March 2025
Report: Valuation of złoty dominated by geopolitics, especially war in Ukraine
Analysts at Bank Millennium report that the Polish zloty (PLN) remains highly sensitive to geopolitical factors, particularly Ukraine's future. The EUR/PLN exchange rate fluctuates within the 4.10-4.20 range, currently leaning towards the upper limit. Meanwhile, USD/PLN is expected to remain stable, with potential short-term attempts to break the 3.90 level.
The Polish bond market is experiencing a decline in yields, with 10-year bonds nearing 5.80% due to Poland’s strong liquidity position and lower debt issuance plans. However, external factors, including Germany’s fiscal policies, may disrupt this trend.
This week’s key domestic event is the government bond auction on Thursday, with PLN 5-10 billion in issuance, potentially influencing bond valuations.
(pb.pl)
