Investors' unwavering confidence in Polish currency

The Polish zloty has not lost investors' confidence, it is worth promoting as a reserve currency for other countries, the head of the Warsaw Stock Exchange said on Wednesday.

Marek Dietl, taking part in the "PAP's Special Guest" programme, said that the Polish zloty "in the short and medium term above all provides a damper for external shocks and freedom to pursue a monetary policy."

According to Dietl, in the long run, the conclusion from the pandemic crisis is that "the Polish currency has not lost investors' confidence even for a moment," and added that "it seems that this is a good time to promote the zloty as a reserve currency for other countries."

Dietl assessed that today it is clear that no central bank in the world would make a mistake if it had Polish government bonds in its foreign exchange reserves, as the PLN is an "extremely stable currency, with a well-conducted monetary policy and predictability."

The head of the Warsaw Stock Exchange (WSE) noted that among currency dealers in the Polish markets the zloty is referred to as "turbo euro" in view of Poland's rapid economic growth.

The WSE president believes that politicians dealing with economy as well as the central bank, Polish enterprises and representatives of the capital market should "promote the Polish zloty as a reserve currency. It would also be a kind of a promotion of the Polish economy and reduction of risk for our budget as we could issue even more bonds in our local currency."