Economists at Deutsche Bank’s Global FX Research team named the Polish zloty the world’s cheapest currency. According to them, the zloty is undervalued by around 10 percent.
Experts predict growth in the Polish currency as the country’s economy is expected to advance by 3.5 percent in 2016 and 2017. Besides, Poland’s business activity is rather high alongside record low unemployment and rising earnings.
The data provided by the German analysts coincides with the outlook by the European Commission that forecasts a 3.5 – 3.7 percent growth a year in the Polish economy.
In March, Deutsche Bank described the Russian ruble as the most undervalued currency after assessing exchange rate dynamics through BEER (Behavioral Equilibrium Exchange Rate) developed back in 1999. The model helps find the difference between the real ruble’s exchange rate and the country’s economic situation. In March, the ruble’s rate against the US dollar made up 73 rubles. In May, the ruble’s exchange rate rose to 64 rubles a US dollar.
