Zloty falls after secret talks between the central bank and finance minister

Finance Minister Marek Belka and the president of the National Bank of Poland (NBP) Leszek Balcerowicz met on Friday afternoon in the head office of central bank to discuss the zloty exchange rate. Marek Belka brought the promised list of proposals for activities to help weaken the zloty. Although the contents of the meeting itself was highly confidential, the mere fact that it took place was enough to weaken the zloty to its lowest level since January this year. It is known that Belka prefers a partially-free exchange rate and wants to set limits within which the zloty could float. The central bank would buy or sell the zloty on the market, depending on the need to keep it within the limits. Marek Belka promised that the government would work on the alternative propositions made during Thursday's meeting of the Monetary Policy Council (RPP). "We will discuss changes to the exchange rate policy after we receive the government's suggestions. So far we have only heard about them through the media," said RPP member Boguslaw Grabowski (Rzeczpospolita, May 18-19, p. A1; Gazeta Wyborcza May 18-19, p. 24) P.W.