In quarter three of 2011the fastest currency to decline in Europe was Polish zloty which had fallen by 16.3% versus the U.S. dollar and by 9.8% vs. the euro, decided Bloomberg, having analyzed the dynamics of currency market in Europe.
In Bloomberg’s article there was no mentioning of whether it was analyzing the currencies of other countries, which are non-members of the EU, in particular, Russia.
In accord to the official Russian central bank’s data the Greenback starting from July 1, 2011, increased by 15% (27.87 in July and 32.11 on September, 26), the euro added 7% (40.42 and 43.37 correspondingly).
A plunge of zloty lead to that the central bank of Poland had to enter the market with purchases of national currency. Bloomberg acknowledges that the event has not happened since April, 2000, when zloty became a fully convertible currency.
Central bank’s interventions helped zloty to strengthen on September, 23 by 3.2 percentage points vs. the euro.
Among the reasons which investors, selling zloty, name there are worries concerning the government’s disability to narrow the budget deficit to 3%.
Moreover, investors anticipate that that the EU debt problems will influence on Poland.
Another factor of zloty’s decline is the overall instability on the currency markets, due to which traders are selling currencies of developing countries.
Some time ago it was informed that a few international banks had downgraded the forecasts of the Polish economic advance.
Thus, Goldman Sachs expects the GDP of the country to grow not by 4.2% but only by 3.8% in 2011.
Bank of America Merrill Lynch revised the forecast from 3.7 to 2.9%.
At the same time the government of Poland foresees an upmove by 4%.
