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Bloomberg
Poland’s central bank moved to weaken the zloty for the first time in a decade, delivering on a warning that it won’t tolerate a stronger currency as the economy tries to recover from the Covid-19 pandemic.
Sales by the bank helped push the zloty down by as much as 1.7% against the euro in low-volume trading.
The step comes after zloty reached its strongest level in three months in December, with markets ignoring warnings from the Monetary Policy Council that it should weaken to help ease aftermath of the worst recession since the fall of communism.
MPC member Jerzy Zyzynski told the PAP news service that the intervention should probably be interpreted as a move to “encourage†the zloty to return to a level of about 4.5 per euro. He said the bank may act again if the currency starts to appreciate, and that the decision to step in wasn’t discussed within the MPC.