Złoty (literally meaning "golden", plural: złote or złotych, depending on the number) is the Polish currency unit.

• ISO 4217 currency code: PLN
• Exchange rate (02/2005): 1 USD = 3.15 PLN; 1 Euro = 4.08 PLN

As a result of hyperinflation in the early 1990s, the decimal point on the currency was moved by four places. Thus 10,000 old złotych (PLZ) became one new złoty (PLN).

History

The złoty is a traditional Polish currency unit dating back to the Middle Ages. Initially, in the 14th and 15th centuries the name was used for all kinds of foreign golden coins used in Poland. In 1496 the Sejm approved the creation of a national currency and its value was set at 30 Prague groschen, later converted to local Polish grosz. It was not the only currency in use and the name was used for the 30 groszy coin called the Polish golden (polski złoty , as opposed to the Red golden or czerwony złoty ).

Following the monetary reform carried out by King Stanisław August Poniatowski, the złoty became Poland's official currency. It remained in circulation after the Partitions of Poland and both the Duchy of Warsaw and the Congress Kingdom used it. The Warsaw mint issued them until 1841, although the golden coins remained in use until the early 20th century.

The modern złoty was introduced by Władysław Grabski in 1924 following the hyperinflation and monetary chaos of the years after World War I. It replaced the Polish mark which had been in use since 1916. Denomination: 1 złoty = 100 groszy = 0.1687 grams of pure gold; 1 złoty = 1 800 000 Polish Marks, 1 1939 złoty = 8 2004 złoty

Current Coins

• 1 grosz
• 2 grosze
• 5 groszy
• 10 groszy
• 20 groszy
• 50 groszy
• 1 złoty
• 2 złote
• 5 złotych

Banknotes

• 10 złotych
• 20 złotych
• 50 złotych
• 100 złotych
• 200 złotych

Future

Poland's entry into the European Union (2004) does not mean adoption of the euro, at least not for several years or more. The złoty will be the main currency and the euro a secondary one. Introduction of the euro in Poland will most probably not happen before 2010¹, although certain conditions could delay or prevent this. Poland itself said in June 2004 that it would like to join the euro in 2008, this forecast mainly being made due to its strong quarterly GDP growth and lowering of the budget deficit. However, the złoty will remain the currency for the foreseeable future.
____
¹ acc. to Standard & Poor's analysis

External links

• Banknotes issued by the NBP
• Coins issued by the NBP