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UPDATE 1-Polish zloty will not rise to 3.6/EUR-cbanker

Published 04/09/2010, 02:17 AM
Updated 04/09/2010, 02:36 AM
EUR/PLN
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(Adds further quotes, detail)

WARSAW, April 9 (Reuters) - Poland's central bank deputy governor Witold Kozinski said on Friday he did not expect the zloty to rise as high as 3.6 to the euro, adding interventions on the FX market could not be excluded.

The zloty currency is near 16-month highs against the euro, though it was down some 0.5 percent on Thursday amid concerns over Greece's debt crisis.

"I can't imagine that the zloty would reach 3.60 (zlotys) per euro," Kozinski told TVN CNBC.

"The central bank is present in the market, I'm talking about central banks all over the world, and I cannot exclude a possibility that the central bank will appear on the market but this is not a question of defending a certain exchange rate level," Kozinski added.

The zloty has become a hot topic in Poland, with some analysts saying further rises could jeopardise the country's still-fragile economic recovery.

Some government officials have already expressed concerns that zloty gains are harming exports and fuelling imports but they did not use the word "intervention" at any instance.

"Signals are sent every day. Not only (central bank) governor (Slawomir) Skrzypek was talking about this twice. Yesterday (Deputy Finance Minister Ludwik) Kotecki expressed his concern with the zloty, (Deputy) Prime Minister (Waldemar) Pawlak too, so there is plenty of verbal interventions but whether there we'll be an intervention on the market? we'll see."

But late on Thursday a member of the central bank's Monetary Policy Council (MPC), Anna Zielinska-Glebocka said that if the zloty appreciating trend would prove long-term then the panel may start considering interventions.

At 0558 GMT the euro traded at 3.8470 zlotys. (Reporting by Kuba Jaworowski; Editing by Kim Coghill)

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