"Poland’s central bank said on Tuesday it simply wished to avoid sharp swings in the value of the zloty after it surprised investors by intervening to prop up the currency for the first time since the end of 2011.
“We are not interested in shaping the exchange rate for longer periods of time,” Andrzej Raczko, a non-voting member of the bank’s board and former finance minister, told the TVN CNBC business news channel. “We cannot allow sharp swings in the exchange rate… We can only influence the currency market when the market is very unstable.”
The central bank and the state-owned BGK bank intervened several times on Friday, selling euros for zlotys to prop up the Polish currency’s value after it hit a one-year low on Thursday of 4.32 to the euro. Its latest fall following comments by Marek Belka, central bank governor, who said he was unconcerned at the weakness of the currency and that it helped Polish exporters. After the interventions, the zloty recovered some ground and was trading at about 4.28 to the euro on Tuesday."
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