Polish finance minister says zloty currency currently too weak

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Polish Finance Minister Tadeusz Koscinski said on Thursday the zloty is currently too weak, sending the currency higher.

Koscinski spoke after the Polish central bank signalled it would have preferred the zloty to be weaker during the coronavirus pandemic to support economic recovery.

“They conduct monetary policy, we conduct fiscal policy,” Koscinski said, when asked by a reporter whether there was a difference of opinion between him and the central bank about the zloty. “For me, the exchange rate is a bit too weak.”“After the finance minister’s comments that the zloty is still too weak, the euro/zloty went from 4.46 to 4.45... The market is looking for reasons to buy zloty I guess,” said a Warsaw-based currency trader.

Koscinski also said Poland plans to issue bonds on the domestic and foreign markets after the 2020 budget is amended. “We already have 100% of our borrowing needs in line with the current budget...Ahead of us is the budget amendment and then we will see what the needs will be and then we will go out to the domestic and foreign market.”

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