28th December 2004
Sunday, November 29th, 2009
Dollar reaches record low against the złoty
For the first time in almost eight years the value of American dollar dropped below zł.3 due to the fact that investors are still eager to dispose of the U.S. currency, which is constantly losing value on international markets.
Such a low value of the USD against the złoty was anticipated by economists, but not all of them expected that it might happen so soon. It is expected that the American currency will further lose its value. Foreign investors are eager to purchase złoty, as they believe in the strength of the Polish economy. Current situation is advantageous for those borrowing money in foreign currencies, but disastrous for those saving in them. Economists believe that the strength of the złoty is the effect of EU accession, as investors have gained increased confidence in Poland and started to purchase bonds and shares in the country. "The złoty is strengthening due to foreign investments, more privatization and billions of Euro flowing into the country from the EU," said Piotr Kuczyński, economist with the Warsaw Investment Group (WGI). However, the downside of the strength of the złoty is that it may soon prove to be disastrous for the economy as a whole. (Rzeczpospolita, pp. A1, B5; Gazeta Wyborcza, pp. 1, 20) M.M.
From Warsaw Business Journal
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