Poland Pulls Trigger to Weaken Zloty

[Dover]

Another DUer posted this story in an LBN thread about the disasterous plane crash that killed many of Poland's top brass. I think he/she was implying that this action by their central bank, the day before the crash, had some relevance to that event. I don't think it is that big a deal, but don't understand finance enough to determine its impact. However, I thought it might interest folks in this forum:

Poland Pulls Trigger to Weaken Zloty

April 9, 2010, 12:18 PM ET.

In one of those rare moments of unity, the National Bank of Poland and the Polish government agreed on the need to weaken the Polish zloty, which over recent weeks has rebounded close to its precrisis strength. The currency’s strength is now seen a possible threat to economic recovery. After several verbal interventions over the past few days, the central bank intervened with real money Friday, for the first time in more than a decade.

The bank followed through on its Thursday warnings that it is “technologically and psychologically” prepared to enter the currency market to prevent “excessive strengthening of the zloty.” Government officials also said earlier this week that the “strong zloty” is damaging growth and, after Friday’s intervention, said they fully back the central bank’s move.

Not too long ago economists said “the equilibrium rate,” which you could very roughly translate as “the fair value that’s acceptable for both exporters and importers,” of the zloty is around 3.80 zloty to the euro...cont'd

http://blogs.wsj.com/new-europe/2010/04/09/polish-central-bank-pulls-trigger-to-weaken-zloty/

[roamer65]

1. Competitive currency devaluations...just like during the GD.

[dixiegrrrrl]

2. When do we get to play here, then?