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WARSAW, Dec 2 (Reuters) - Polish Finance Minister Jacek Rostowski said there is no need to intervene on the currency market, but if there is serious market turmoil the central bank could step in.
The zloty has recently hit four-month lows against the euro on the back of the increased fears over the condition of the euro zone peripheries threatening to inflate Poland's soaring public debt.
"We don't have a target exchange rate at this point, we have a free float," Rostowski told parliament on Thursday. "There is no need to intervene now. If serious turbulences occur the central bank may intervene."
Speaking separately on Thursday central bank head Marek Belka reiterated Zloty "was doomed" to gain in the long run and a Deputy Finance Minister Dominik Radziwill said the economic fundamentals justified zloty appreciation.
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At 1322 GMT the euro traded at 4.0050 zlotys, a lot weaker than the 4.11 level it hit on Monday.
ZLOTY MEETS DEBT
The recent zloty slide threatens to boost the value of Poland foreign-denominated debt which is key as the European Union's largest ex-communist economy battles rising liabilities that may top a key safety level.
Rostowski said debt would likely stand at 53.0-53.5 percent of gross domestic product at the end of 2010 and thus would stop short of the key level of 55 percent.
Once this threshold is breached the government is obliged by law to introduce painful fiscal cuts, a move the centre-right government of Prime Minister Donald Tusk would like to avoid ahead of the 2011 parliamentary elections.
So far polls show Tusk's Civic Platform (PO) is well ahead of its main rival Law and Justice (PiS) and PO has recently emerged as the strongest party in the local elections. [ID:nLDE6AQ01D] (Reporting by Pawel Sobczak and Filip Kochan, writing by Kuba Jaworowski; editing by Chris Pizzey)