Poland does not expect the zloty to exhibit high volatility, a deputy governor of the central bank said, playing down chances of a repeat of last year's heavy interventions that ate into the bank's hard currency reserves.
In an interview with Reuters, Witold Kozinski said western Europe looked to be moving closer to solving its debt problems, welcoming a deal at last month's EU summit to leverage the region's rescue funds to better support struggling states' finances..
He said the agreement meant less market turmoil for Poland, whose assets were additionally underpinned by the government's efforts to cut the public deficit and healthy, albeit slowing growth rates.
"Poland's economic outlook is very positive in my opinion. It is no wonder then that the zloty is faring well," Kozinski, responsible for market interventions at the central bank, said. The bank, which acts to reduce zloty volatility rather than target a specific exchange level, last intervened on the currency market in December, but dealers remain on alert for further interventions.
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