FinMin: EUR/PLN level not risky for Polish economy
PR dla Zagranicy
Roberto Galea
09.04.2015 15:44
The current strong level of the Polish złoty against foreign currencies is not a threat to Polish companies, and the economy at large, said Finance Minister Mateusz Szczurek.
Photo: Flickr.com/Chris RubberDragon
In an interview session with journalists at the Sejm lower house of Parliament, Szczurek said that the ministry isn’t concerned that the złoty – which hit four-year highs against the euro on Thursday – could hurt the economy.
Courtesy of Google Finance
“Although this is certainly a factor that reduces the profitability of exports and provides a challenge for some sectors of the Polish economy, I am convinced that at these levels it is not dangerous for Polish entrepreneurs,” the Minister said.
On Thursday the złoty strengthened to a level not seen since 2011, increasing concerns that Polish consumer prices could deflate even further. In February the figure fell to a record-low 1.6 percent, falling for eight consecutive months.
“The Federal Reserve probably won’t rush with rate hikes after very weak payrolls, which is positive for the złoty,” Piotr Matys, a foreign-exchange strategist at London-based Rabobank International, told the Bloomberg news agency.
“We might see a verbal intervention from the central bank to help stem the zloty’s surge, but it won’t change the dominating trend: breaking below 4 per euro is not a question of if, but when.” (rg)