Poland has strong economic fundamentals and is well set to weather a weakening of the zloty to as low as 4.5 per euro, Deputy Prime Minister Waldemar Pawlak said on Wednesday, praising recent intervention supporting the currency.
Pawlak, whose small Peasants' Party (PSL) won 8.4 percent of votes in a parliamentary election earlier this month, is confident the current ruling coalition with Prime Minister Donald Tusk's Civic Platform (PO) will continue in the new parliamentary term.
"The zloty weakening was of speculative, not fundamental nature and the Polish central bank achieved quite significant success on that field with small costs," Pawlak told Reuters, referring to three interventions to help the zloty this year. The zloty shed 9.4 percent of its value to the euro this year as investors flee emerging markets and their riskier assets fearing a renewed recession and the euro zone's debt crisis.
"The interventions are carried out rationally, that is unexpectedly and, seemingly, in an uncoordinated way. It's carried out well, it would be worse if they defended a particular exchange rate level," Pawlak said in his first interview since the October 9 poll.
Comments
Comments are closed for this article.