No risk for Polish zloty to remain weak in long-term, says prime minister

WARSAW (Reuters) – There is no risk that the Polish zloty will remain weak in the long-term, Poland’s prime minister said on Friday, adding the government was working on measures that would support the country’s economy, which was hit after the Russian invasion of Ukraine.

The Polish currency has been under pressure since Russia began its invasion of Ukraine on Feb. 24, prompting the central bank to sell foreign currencies for zlotys. The last intervention was conducted on Friday, after the zloty fell to its lowest level since 2009.

“We know how to defend the zloty and there is no fear that the zloty will be a weak currency in the long run,” Prime Minister Mateusz Morawiecki told private TV broadcaster Polsat News.

He added that the government is working on measures that would reduce the negative impact on the economy due to the conflict in Ukraine.

“It is time for an anti-Putin shield and we will be working on such a shield in the near future,” he said, referring to Russian President Vladimir Putin.

“It will concern all those elements of economic life that suffer from war, such as economic growth, currency, inflation, interest rates. … We are preparing such an anti-Putin shield,” he added without giving further details.

In a podcast also published on Friday Morawiecki called again for imposing more sanctions on Moscow.

“With each passing day that Putin wages this war, the sanctions package should expand,” he said.

Source : Reuters

FILE PHOTO: A picture illustration of Polish zloty banknote, taken in Warsaw January 13, 2011. REUTERS/Kacper Pempel/File Photo

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