Zloty Currency Continues to Strengthen Against Foreign Currencies

The Zloty Currency, Poland’s native currency, has continued to appreciate against foreign currencies for the third consecutive month, with the largest scale of appreciation seen against the euro. According to reports, the EUR/PLN exchange rate was at its lowest level since June 2022. In April alone, the zloty gained slightly over 2 percent against the euro and 3.66 percent against the US dollar, reaching levels last seen in February 2022.

The Polish Steps to Strengthen Zloty Currency:

Despite the decisions of central banks, such as interest rate increases in the US and the same prospects for movement in the euro zone, which reduces the difference in interest rates between the currencies, the zloty remains strong. This is believed to be primarily due to a large surplus of exports over imports, which has kept the currency strong in the face of external factors.

However, the decreasing difference in interest rates between the US, the euro zone, and Poland could potentially work against the zloty currency in the future. While there are currently no plans to lower interest rates in Poland, some reports suggest that there may be a possibility of a 25 basis point cut in the autumn.
Despite the current strength of the zloty currency, some experts believe that the currency may be put to the test in the future, and the current exchange rates may be some of the most favorable for the possible purchase of foreign currencies.

Overall, the strength of the zloty currency against foreign currencies, particularly the euro and US dollar, reflects the strong economic performance of Poland and its ongoing trade surplus. While the zloty’s strength may be tested in the future, the current situation suggests that the currency is likely to remain strong in the near term. The central bank’s decision on interest rates in the coming months will be closely watched by investors and analysts alike.

Implications for Banking and Business

Developments in the Polish banking sector affect businesses operating in the country in several ways. Access to corporate banking services, credit availability, deposit rates, and payment infrastructure are all critical factors for companies — whether established Polish firms or foreign-owned entities entering the market.

For foreign entrepreneurs setting up operations in Poland, choosing the right banking partner is a strategic decision. Major Polish banks including mBank, ING Bank Śląski, Bank Millennium, PKO BP, and Santander Poland offer varying levels of service for international clients, including English-language online banking, multicurrency accounts, and dedicated relationship managers for corporate clients.

The Polish banking market is well-regulated by the KNF (Financial Supervision Authority) and participates in the EU deposit guarantee scheme (BFG — Bank Guarantee Fund), providing deposit protection up to EUR 100,000 per depositor per institution. This regulatory framework provides stability and confidence for businesses maintaining corporate funds in Polish banks.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our personal income tax advisory, or contact us for a free consultation.