National Bank Opts For Gradual Devaluation Of Zloty
WARSAW, Poland (AP) _ The National Bank of Poland announced Sunday it would move from rigid exchange rates and allow a gradual devaluation of the zloty, according to the official PAP news agency.
The Polish zloty’s exchange rate is fixed to a basket of currencies: the U.S. dollar, the Deutschmark, Sterling and French and Swiss francs. On average, the value of the basket will grow by nine percent daily, the report said.
The change, effective from Monday, has been made to make Polish exports more competitive.
″The increase in costs for our exporters requires the application of a certain adjusting mechanism,″ said Andrzej Topinski, acting chairman of the bank, in an interview on state television.
Topinski added that he hoped such a gradual devaluation would also stabilize the currency market.
The zloty was last devalued May 16, falling to 11,100 zlotys per dollar.