EXCHANGE RATES BETWEEN POLISH ZLOTY AND BRITISH POUND

Monday, the euro was at $1.3120 from $1.3241 late Friday, according to EBS via CQG. The dollar was at Y84.25 from Y84.06, while the euro was at Y110.53--near two-month lows--from Y111.38. The U.K. pound was at $1.5573 from $1.5617. The dollar was at CHF1.0001 from CHF1.0032.

The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 80.810, near two-month highs, from 80.357.

Further unnerving investors, Italy sold EUR6.837 billion of bonds Monday, only slightly below the maximum planned EUR7 billion, but paid higher yields than a month ago to sell the three- and 10-year bonds.

Spain's five-year credit default swaps rose 25 basis points to 350, Portugal's increased 43 basis points to 545, and Italy's sovereign CDS were 16 basis points higher at 231.

That means it cost $350,000 a year to protect $10 million of Spanish bonds for five years--and $545,000 for Portuguese bonds and $231,000 for Italian bonds, respectively.

Separately, there is a growing trend of a contagion leaking out of the euro zone and heading east, said Alan Ruskin, global head of G-10 foreign exchange strategy at Deutsche Bank in New York. There is concern among economies closely linked to the zone, and a necessary knock-on effect, he said

At around noon EST, the Polish zloty traded off 2.7% against the safe-harbor greenback while the Hungarian forint slid 2.45% against the dollar, he said.

Also, investors are now short the euro based on fears of debt contagion spreading in the euro zone, according to a Scotia analysis of the weekly Commitments of Traders report released by the U.S. Commodity Futures Trading Commission late Monday.

Net speculative bets, called shorts, against the euro, totalled roughly 8,300 contracts in the week ended Nov. 23. That position represents a value of $1.4 billion in anti-euro bets.

With the ICE Dollar Index strengthening, Deutsche Bank's PowerShares U.S. Dollar Index Bearish exchange-traded fund was down 0.56% from late Friday, while its PowerShares U.S. Dollar Index Bullish fund was up 0.60%. The two exchange-traded funds are based on Deutsche Bank currency-futures indexes, whose composition mirrors that of the ICE's Dollar Index.

For your information they said the same thing about Germany in the 1930's. The result will be the same. 1930's Germany was a creature of the American Banking Class, the same can be said of present day China.

How so? Poland resembles the Nazi Germany economy more more than China does. Nazi Germany built itself on debt to become one of the largest debtor nations in the world, China has done the opposite. In 1939 Germany imported more than it exported, China will not have that problem considering their purchases into stakes of oil and gas fields, as well as domestic energy production.

Moving right back on topic...

Poland is going further and further into debt. Any country that becomes a debtor country is beholden to outside interests. That's why the next few years will be crucial. If Polish finances are bad enough, I would guess they would charge towards the Euro safe haven as quickly as possible, and squeak by. The economy would take a hit through ERM, but, they'd get in.

It was US government policy to outsource manufacturing to low wage China. Lower wages, higher profits, have some political control over China. It's a Trifecta Man!

US Banking class enabled Germany war machine through loans. In the 1930's "It was the German Miracle". Today it's the Chinese miracle. Same crap.

What's the title of your book, Harry? I may want to read it or just look through it. If you don't mind, please PM the title to me. If you do mind, could you just tell me what is the domaine the book tackles?

The zloty slides down since investors rush off in the result of the Irish crisis to the curriences that they view as more stable. The same story happened as a result of the Greek financial crisis. Afterwards the zloty rebounded, it is likely to rebound this time again.

Analysts have the Zloty improving 5-6% over the Euro in the next year. Thoughts?

Merged: Zloty exchange rates?

Been looking to exchange GBP to Zloty but can only seem to get around 3.9PLZ to the pound. Would it be better to exchange the money when in Poland than it is at home?

Cheers

Yes you would.

Specifically, wait until you get to the centre of town (NOT the airport or hotels - even forget the banks) and go to a Kantor. If you have a significant amount to trade (eg EUR 200 and up) you can get a better spread than the one advertised on the door, which is usually for 100 EUR notional.

For EUR 500 and up, you should be looking to get about 5 groszy off the FX market rate.

EXAMPLE: I want to sell 500 GBP and the current rate is 4.41 according to the link. I should be holding out for 4.36, even though the advertised rate is probably going to be nearer 4.30. The banks will be offering around 4.25.

@alexw68, thanks for the info about kantor.

Locally in the city centre at the moment, the GBP seems weak, at near its weakest ever against the PLN. The boards are saying they will give you 4 zloty 25 gr per one UK pouund (ie £1=4.25zl). Just a few days ago it was 4.41zl

This may be the result of the Bank of England's numpty Mervyn King - listen to what he said to the Commons' Select Committee. A major face palm moment, although he may just be trying to devalue the pound to boost UK exports (a policy that has not worked so far in 2 years). If the BoE continues to keep base rates at 0.5pc and talk of money-printing again, well... it ain't rocket science. Question is, what will really happen given the Greek and other factors?

Zloty Exchange Rate

Hiyaz. I can't believe that there is no "sticky" about current exchange rates for polish currency. I've found PLENTY of small posts about the latest exchange rates, but these age very fast.

Anyway, I'm trying to predict the direction of the polish zloty. Is it weakening or strengthening? I've found this:
ratesfx.com/predictions/pred-pln.html

Currently (July 2011) I would get 2.9zl for 1AUD. So I'm trying to determine whether to send capital now (while its high) or wait it out and see what will happen in 12 months when I go to Poland.

Advice?

Anyone throw any light on the zloty's strength against the UK pound (or GBP weakness against the PLN) despite Polish IRs being so low now? Is it because of an upbeat view on the economy of Poland, or some other reason?

I would have thought it would be a minimum 5.50-6zł per GBP, with Poland's IRs so low. Obviously, I must be wrong.

Anyone brave enough to forecast? I no longer am. I have been proven wrong on the 5.50 minimum I'd expected (at least for now it seems).