The Polish złoty weakened past 4.40 to the euro this week, its lowest level against the euro since November 2023, as investors weighed global market risks and uncertainty surrounding Poland's central bank. The euro has gained around 4.5% against the złoty since the start of the year, while the US dollar has risen by roughly 10%. The Polish currency has also underperformed regional peers. Marcin Luziński, an economist at Erste Bank Polska, has cited concerns about Poland's finances. Eurostat figures show the country recorded the EU's second-largest general government deficit in 2025, at 7.2% of GDP, behind Romania. A standoff over appointments to the National Bank of Poland's management board has added to the uncertainty. Governor Adam Glapiński also faces possible proceedings before the State Tribunal, with a parliamentary vote possible as early as November. A parliamentary committee advanced the case. A weaker złoty could raise import prices and potentially complicate the central bank's next interest-rate decision.
