Strong złoty means a strong economy and no intervention
Central-bank officials have said speculative inflows may have contributed to the złoty's recent rise.
However, Prime Minister Marek Belka, a former Finance Minister, told a meeting of foreign investors that it was a result of the country's continuing economic recovery. "We are seeing a stabilisation of economic growth at a very respectable level of around five percent.
"The strengthening of the złoty testifies to the strength of the economy. It is disadvantageous for exporters but shows the economy's health and cuts the costs of modernisation."
The złoty has gained more than 14 percent against the euro and 26 percent against the dollar since Poland joined the EU on May 1, buoyed by accelerating growth and high interest rates.
Policy-makers and central bankers have sent mixed signals about the złoty in recent weeks, disagreeing over what has caused the rise and about whether any action was needed to weaken the unit.
But both government and central-bank officials have said that there is no need for currency interventions.
(L.M., Reuters)
However, Prime Minister Marek Belka, a former Finance Minister, told a meeting of foreign investors that it was a result of the country's continuing economic recovery. "We are seeing a stabilisation of economic growth at a very respectable level of around five percent.
"The strengthening of the złoty testifies to the strength of the economy. It is disadvantageous for exporters but shows the economy's health and cuts the costs of modernisation."
The złoty has gained more than 14 percent against the euro and 26 percent against the dollar since Poland joined the EU on May 1, buoyed by accelerating growth and high interest rates.
Policy-makers and central bankers have sent mixed signals about the złoty in recent weeks, disagreeing over what has caused the rise and about whether any action was needed to weaken the unit.
But both government and central-bank officials have said that there is no need for currency interventions.
(L.M., Reuters)
