What will happen to currencies in 2023?

The year coming to an end was one of the more exciting in terms of changes that occurred in the domestic currency market and beyond. In 2022, rates broke all-time records. After the panic caused by Russia's attack on Ukraine, the ceiling of PLN 5 was broken by the euro. A few months later, this barrier was surpassed by the dollar, with it being worth noting that the USD started its rally at around PLN 3.90. On the other hand, the Swiss franc, reaching historic peaks, even cost more than PLN 5. What will the year 2023 be like? 

“The zloty only caught its breath in the last quarter of 2022. Other currencies also saw some calming down. The euro exchange rate is currently balancing around PLN 4.70. Similarly, the Swiss franc, which, relative to historical highs, has fallen by more than 40 gr, to around PLN 4.75. The USD, on the other hand, deepened minima in December, reaching PLN 4.40," says Aleksander Pawlak, president of Tavex. 

The retreating global inflation, but also the economic slowdown resulting from a series of rate hikes, may suggest that central banks will no longer be so eager to continue tightening monetary policy at the current pace. New records of weakness in the zloty may already be hard to come by. 

(WBJ)