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Poland's Cabinet worried about zloty's rapid rise, to discuss exchange rate policy with cbank
The Polish Cabinet will discuss the country's exchange-rate policy with the central bank, as it is worried about the zloty, which has been rapidly rising since spring, Polish Prime Minister Marek Belka said in a government statement.
"The appreciation worries not only the government but also the management of the central bank," Belka said. "In the nearest time I will ask the governor of the central bank and I will invite the Monetary Policy Council and the central bank's management for a meeting [to discuss] the exchange rate policy and what can we do in an environment where the zloty has very rapidly appreciated in the past few months."
The Polish currency has been strengthening as of Poland's entry to the EU on May 1, 2004. The zloty has gained over 17% to the dollar and over 11% to the euro from the beginning of the year.
On Tuesday, central bank Vice President Krzysztof Rybinski said that the zloty is overvalued. If the appreciation of the zloty hinders the decrease of inflation too strongly, the central bank could intervene on the currency market, he said. However, on Wednesday, central bank Governor Leszek Balcerowicz said that the strategy of not intervening on the currency market is favorable for Poland.
Source: interfax.com |
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