Bloomberg News

Zloty Advances First Day in Four After State Bank Sold Dollars

November 18, 2011

Nov. 17 (Bloomberg) -- The zloty strengthened for the first day in four against the euro after Poland’s state-owned Bank Gospodarstwa Krajowego resumed selling dollars on the market yesterday to prop up the currency.

The zloty appreciated 0.3 percent to 4.4287 per euro at 3:28 p.m. in Warsaw. The currency has weakened 1 percent this week amid concern the euro-area’s debt crisis will escalate.

Three traders said yesterday they bought dollars from BGK, which sometimes acts on the Finance Ministry’s behalf. The government stepped in to defend the zloty by selling euros and dollars in September and October through BGK, according to Warsaw-based traders involved in the transactions.

The central bank also sold foreign currency on the market three times between Sept. 23 and Oct. 3 in its first market operations to support the zloty since the currency was floated in 2000, the National Bank of Poland said.

--With assistance from Andras Gergely in Budapest. Editors: Linda Shen, Peter Branton

To contact the reporter on this story: Pawel Kozlowski in Warsaw at pkozlowski@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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