8th March 2006
Friday, July 30th, 2010
The złoty takes a tumbles and analysts warn the it may just be the beginning
Tuesday was another day of depreciation for the złoty. The Polish currency lost 0.9% against the Euro and at the end of the day stood at zł.3.85 to the Euro.
The weakening of the złoty may be good news for exporters but it translates into a problem for those who took loans in foreign currencies. "The depreciation of our currency is the result of another government's crisis which overlapped with the outflow of capital from emerging markets," commented Artur Wrobel, a currency dealer with Bank Handlowy. "After the increase of interest rates in the USA and Eurozone countries, investors have opted to transfer their capital to safer markets." Analysts believe that the correction on the currency market may be deep. "The capital outflow is visible on numerous emerging markets," stated Pekao analyst Marcin Bilbin, "The prices of not only currencies, but also shares and bonds are falling. This increases the possibility of a negative scenario where in the short run the price of euro may hit zł.3.90," said Bilbin. (Parkiet, p. 1; Puls Biznesu, p. 5) E.B.
From Warsaw Business Journal
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