What is the Currency of Poland?

By Victor Kiprop on August 1 2017 in Economics

Polish złoty coins and banknotes.

What is the Currency of Poland?

Poland is the largest economy in Central Europe. It has a population of about 38 million, and as of 2016, the country had a per capita income of US$12,400. Poland joined the European Union in 2004 and has made significant strides to catch up with the more advanced economies of the EU, such as Germany. In 2016, the national GDP totalled $469.8 billion after experiencing a 2.8% growth. In the same year, Poland experienced a decline in investment by 5.5%, the highest decline since 2002. Although several member states of the EU use the euro as currency, Poland does not. Poland's official currency is the Polish złoty, which uses the symbol zł and the code PLN.

Poland and the Euro

Although Poland does not use the euro as its currency, the Treaty of Accession stipulates that new members of the European Union are required to replace their currency with the euro, although the timeline is not specified. Poland is slow to adopt the euro because 70% of the public believe the adoption of the euro is bad for the country's economy.

Polish Złoty

The polish złoty is subdivided into 100 groszy (cents). In 1990, Poland redenominated the złoty. One new złoty was equal to 10,000 old złotys. The National Bank of Poland, the country's central bank, is responsible for producing and maintaining the stability of the złoty. In 1990, a fourth version of the złoty was introduced and is the country's current currency. Coins were minted in 1994 and circulated in 1995.

Polish Złoty Coins and Banknotes

The current version of polish złoty coins were first minted in 1990, but not circulated until 1995. There are one hundred groszy (gr) to one złoty (zł). The coins in circulation are the one grosz, two grosze, five groszy, ten groszy, 20 groszy, 50 groszy, 1 zł, 2 zł, and 5 zł. Unlike the minting of coins, the production of banknotes posed a bigger challenge. In 1990, a new version of the banknotes were printed in the denominations of 10 zł, 20 zł, 50 zł, 100 zł, and 200 zł. In 2012, the National Bank of Poland introduced a new feature on its banknotes. Apart from the new feature, everything else remains the same except for the 200zł note, whose color was changed.

Future of the Zloty

The Treaty of Accession stipulates that Poland is obliged to adopt the euro. The treaty signed in 2004 does not give a timeline for the country to follow but states that Poland can only adopt the euro after achieving necessary stability criteria. It is unlikely that Poland will adopt the euro before 2019. Research has shown that the Polish people are hesitant to adopt the currency due to fear of uncertainty.

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