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Government steps in to stop złoty's downward spiral

In an attempt to halt the złoty's downward trend, the Polish government decided to convert a portion of EU funds on the domestic market into the Polish currency. The scale of intervention is not known, however, what is know is that it definitely brought results, with the złoty's value rising 2% to reach 4.79 to the euro.

The decision to intervene was made following Prime Minister Donald Tusk's Tuesday announcement that the government would intervene if the euro reaches 5 zlotys, and while this rate has not yet materialized, the Finance Minister decided to go ahead with the plan regardless.

Before the intervention, the head of PO's parliamentary club, Zbigniew Chlebowski, announced that “a decision has been made concerning entering the ERM2 mechanism without changes to the constitution.” This was a significant statement considering Law and Justice's strong opposition to the move. (Warsaw Business Journal)