European country has stated a weak currency for economy

Deputy Chairman of the National Bank of Polish Martha Kaitley said that the depreciation of the zloty (national currency) helps the country’s economy. Bloomberg reports that she called a weak currency tool to mitigate global shocks.

Martha Kaitley stated that the zloty was “fairly stable”, with the exception of crisis periods, such as coronavirus pandemic. “Now we have a small depreciation that helps at the moment. I do not say that we should not carry out any structural reforms or something like that, but we see in this advantage for us when external shock happens,” the financier told .

Transition from zloty for the euro, according to Martha Kaitley, “Create problems” for Poland due to the extremely mild monetary policy of the European Central Bank (ECB). “Our inflation is usually higher than in the euro zone, therefore, in the long run, we need higher interest rates,” she said.

The national currency has fallen in relation to the euro to the lowest level from April. Now zloty costs 0.21 euros. The persistent requirements of politicians support interest rates near zero, despite the record high rise in prices, put pressure on zloty at a time when neighboring Czech Republic and Hungary tightened a monetary policy.

The actions of the National Bank of Poland have already criticized. So, for example, the former head of the regulator and the deputy of the European Paramene Marek Belka called the country’s financiers decisions economically illiterate. His discontent was caused by raising wages in response to a record price increase. According to Marca Belki, the decision will lead to further uncontrolled inflation.

/Media reports.