The Polish currency has been generally appreciating relative to the Euro and the Dollar since at least the year 2000. With respect to the Euro, the Polish Zloty has fluctuated more heavily, but overall appreciated slightly between 2000 and 2006. With respect to the Dollar, the Zloty has been steadily depreciating since the year 2000. In 2000, 100 Dollars could be traded for roughly 435 Zloty. Whereas, in 2006, 100 US Dollars only bought approximately 310 Zloty (1). As of March 21st, 2008, 100 Euros traded for 354.36 Zloty and 100 US Dollars traded for 228.82 Zloty, signifying a further appreciation of the Zloty relative to both currencies (2).
From 1998 to 2008, Poland has been steadily increasing its currency reserves. For example: In January of 1998, it had 14,861.8 Zloty worth of reserves. In January of 2002 it had 23,353.6 worth of reserves and in Feb of 2008 it had 55,565.9 worth of foreign exchange reserves, a significant increase over the course of ten years (3).


The Polish Central Bank raised interest rates several times over the course of 2007 in order to fight inflation and achieve a target inflation rate of 2.5%. By October of 2007, inflation had risen to 3%, and the Bank’s main interest rate was at 5%, which was up by 1% since April (4). In November of 2007 and January of 2008 the Monetary Policy Council raised the National Bank of Poland interest rates by .25% each time so the current reference rate is 5.5% (5). By January, the annual increase in consumer prices had reached 4.3%, well above the target rate of 2.5% (6).




(1) http://www.business.gov.pl/Polish,currency,and,exchange,rate,75.html
(2) http://www.nbp.pl/
(3) http://www.nbp.pl/
(4) http://www.abcmoney.co.uk/news/282007173086.htm
(5) http://www.nbp.pl/en/publikacje/raport_inflacja/iraport_february2008.pdf
(6) http://www.nbp.pl/en/publikacje/raport_inflacja/iraport_february2008.pdf