What will happen to PLN Zloty when the Euro is adopted?

What happened in other countries when the euro was adopted? Was existing currency converted at market rate at the time of the adoption?

zoogle.. make friends with google. :)

it will go into the trash heap of history

I realize it will no longer be in circulation, but will everyone's zloty magically change to EUR in their bank accounts one night? Will it be at the market rate or some other fixed rate that is known ahead of time?

Hard to say as officially we haven't even yet made a decision that we are joining Euro zone but before any country joins It must keep exchange rate relatively stabel for 2 years at least and next after the country joins It will have both currency for some time but already without flexible exchange rate.

guardian.co.uk/feedarticle?id=7475630 Zloty strong but no need to intervene

I believed the zloty was curently "shadowing" the Euro.....ie as the Euro has appreciated agains the dollar and UK pound the zloty has mirrored this 17% appreciation over the last 12 mths.

Ergo...the currency hasnt been "stable" for a 2 yr period but in effect quite volatile!

PS It will be dumped and yes prices will rise steeply as has happened in other countries ezpecially Italy......an opportunity to rob the ordinary member of the public!!

We made the decision by joining EU. Every state is obligated to adopt euro eventually. The exchange rate will be known only couple months before the transition i think.

Nornally the history has been that when any country becomes a member of the EU the currency gets stronger of the country thats joining in. So has been the case with the PLN as well. I further expect PLN to get strong against the USD by the end of this year or first quarter of 2009 to approx 1.6 PLN to the USD. However this is not simply because of the Polish economy doing well or the Euro getting stronger. Its the USD that is loosing its charm and getting weaker. With the sub-prime crisis still on and bank problems in US it is likely that the USD will furhter slide. Then one also has to watch how the elections go and what stance the new president has on Iraq.

Regards,

Mash

Things will seem to be much more expensive, esp housing. Best make the big purchases now.