convex
25 Nov 2009
Law / How will the Zloty be against the British Pound over the next 6-12 Months [45]
NBP will probably be doing quite a bit to keep prices where they are now to make sure that Poland remains competitive in the EU market through low labor and investment costs. I wouldn't expect the zloty to appreciate when investors are already a bit shaky. Keeping it where it's at will help Poland maintain investment while belts are tight.
Tusk already missed the deadline for joining ERM for his 2012 "join the euro" deadline. Once Poland joins the ERM, NBP will probably do everything in its power to make sure they hit their targets, which probably won't be pretty, but will mean a stable exchange rate against the euro.
I have a really hard time seeing the pound increase in value unless things get a whole lot better globally. If it gets any worse, the only recourse will be printing up more money (those interest rates can't get any lower...). Darling has managed to officially dump 175B GBP straight off the printing presses, that can't help it's value.
So hey, from the couch, I'd say the pound will lose some to the zloty and the euro. If you want somewhere relatively safe for your money for the next 6 months, gold is always an option (maybe even a profitable one)....
NBP will probably be doing quite a bit to keep prices where they are now to make sure that Poland remains competitive in the EU market through low labor and investment costs. I wouldn't expect the zloty to appreciate when investors are already a bit shaky. Keeping it where it's at will help Poland maintain investment while belts are tight.
Tusk already missed the deadline for joining ERM for his 2012 "join the euro" deadline. Once Poland joins the ERM, NBP will probably do everything in its power to make sure they hit their targets, which probably won't be pretty, but will mean a stable exchange rate against the euro.
I have a really hard time seeing the pound increase in value unless things get a whole lot better globally. If it gets any worse, the only recourse will be printing up more money (those interest rates can't get any lower...). Darling has managed to officially dump 175B GBP straight off the printing presses, that can't help it's value.
So hey, from the couch, I'd say the pound will lose some to the zloty and the euro. If you want somewhere relatively safe for your money for the next 6 months, gold is always an option (maybe even a profitable one)....