A new European central bank turned to currency intervention this week.
As the National Bank of Poland stated simply on its website on Friday:
Narodowy Bank Polski w godzinach południowych dokonał zakupu pewnej ilości walut obcych po korzystnym kursie.
Which translates to “The National Bank of Poland bought a certain number of foreign currencies at a reasonable rate in the afternoon hours.”
The market reacted as follows on Friday:
Which will be seen as good news in Poland, where officials have worried over the effects of zloty strength on the country’s economic recovery.
This, of course, contrasts somewhat to the situation Poland found itself in last year when zloty weakness hit the country’s exposure to euro and swiss franc-denominated mortgages.
It’s also interesting in light of Jean-Claude Trichet’s declaration on Thursday that the ECB maintained a “very tight relationship” with the National Bank of Poland.
Poland, meanwhile, abandoned hopes of imminent euro adoption back in February this year, approving convergence plans that would delay entry into the euro zone until the second half of next decade instead.
Related links:
On the matter of ECB swap lines… – FT Alphaville
IMF squabbles, Polish edition - FT Alphaville