Strong złoty, real test

The złoty has strengthened sharply, with USD/PLN falling below 3.50, raising concerns about the impact on Polish exports. Over the past three years, the currency has appreciated by nearly 20% against the dollar, now at its strongest level since 2017.

For economists, the key issue is the real effective exchange rate (REER), which compares domestic prices with those abroad. Since 2022, Poland’s REER has risen by 25.3%, a sharp reversal from the 2011–2021 period, when it fell by 11%.