Złoty falls back

Following the appointment of former Civic Platform (PO) member Zyta Gilowska as the new Finance Minister, the złoty reached a record high against the euro. However, the government's Midas touch deserted it, after comments by Prime Minister Kazimierz Marcinkiewicz saw the currency relinquish some of its gains.

Marcinkiewicz expressed fears that the current strength of the złoty could pose a threat to the Polish economy and he announced that the Finance Ministry is going to take measures to keep the złoty down.

"These will not be radical steps. I also plan to talk about this problem with the National Bank of Poland [NBP], which is responsible for financial policy," the Prime Minster said.

The złoty began to fall last week as anxiety grew over the budgetary debate, with Civic Platform threatening to propose 72 amendments.

"We may observe some restlessness on the market until the budget is accepted. However, I don't expect the złoty-euro rate will go much beyond zł.3.81. After the budget is passed and if there are no negative reports on the political scene, the złoty will continue to strengthen," Tomasz Wronka, chief analyst at X-Trade Brokers DM, told Puls Biznesu. (Reuters)