What Is the Polish Zloty (PLN)?

The term Polish zloty (PLN) refers to the national currency of Poland. The currency is issued and managed by the country's central bank. The zloty is abbreviated in the 澳洲幸运5官方开奖结果体彩网:foreign exchange market as PLN and is represented by the symbol zł. A single zloty is divided into 100 groszy. Banknotes are issued in values ranging from zł10 to zł500. Coin values range from one to 50 groszy and zł1 to zł5. The zloty is a free-floating currency, which means it isn't pegged to any other currency and nothing is pegged to it.

Understanding the Polish Zloty (PLN)

The Polish zloty is the official 澳洲幸运5官方开奖结果体彩网:legal tender of Poland. Although it wasn't circulated until 1924, the modern zloty dates back to 1919. The country's central bank, Narodowy Bank Polski (or the Central Bank of Poland) is responsible for issuing and maintaining the currency. As of 1997, it holds the exclusive rights to produce the zloty. The bank is also responsible for implementing 澳洲幸运5官方开奖结果体彩网:fiscal and monetary policy to ensure the economy runs smoothly.

澳洲幸运5官方开奖结果体彩网:Banknotes are issued in 澳洲幸运5官方开奖结果体彩网:denominations of zł10, zł20, zł50, zł100, zł200, and zł500. There are also coins minted in values of zł1, zł2, and zł5. A single zloty is divided into 100 groszy, of which one, two, five, 10, 20, and 50 groszy are minted.

The zloty free floats in the forex markets, which means it isn't pegged to any currency. No other currency isn't pegged to the zloty. The most common pairings for the zloty in currency trades tend to be the U.S. dollar (USD), the euro, the 澳洲幸运5官方开奖结果体彩网:Swiss franc (CHF), the British pound (GBP), and the 澳洲幸运5官方开奖结果体彩网:Australian dollar (AUD).

Since the early 2000s, the PLN 澳洲幸运5官方开奖结果体彩网:exchange rate has typically traded between two PLN to one U.S. dollar to over 4.5 PLN to one U.S. dollar. However, it has not traded at two PLN since the 澳洲幸运5官方开奖结果体彩网:Great Recession in 2008 and for the past several years has ranged between three to four PLN to the dollar. As of June 4, 2023, US$1 was equal to about zł4.19.

Special Considerations

The NBP bears responsibility for maintaining price stability in Poland. The central bank strived to limit inflation to a target rate of 2.5%, plus or minus 1% since 2004. The country experienced 3.4% annual inflation when 澳洲幸运5官方开奖结果体彩网:COVID-19 hit in 2020. That annual rate increased to 5.1% the following year. It had a 澳洲幸运5官方开奖结果体彩网:gross domestic product (GDP) growth rate of 6.8% in 2021 with GDP hitting $679.44 billion that year.

When exchanging currencies, be mindful of local limits. For example, the maximum amount that can be withdrawn in cash per day is one thousand Polish Zloty. In particular, the maximum amount of PLN 5,000 that can be withdrawn in one calendar month is restricted. The maximum daily bet that can be placed might be raised to PLN 3,000 if the customer so requests.

History of the Polish Zloty (PLN)

The Polish zloty traces its existence back to the Midꦚdle Ages. The current zloty marks the currency’s fourth iteration. 

1. During the first zloty period of the 14th and 15th centuries, the word zloty initially indicated any gold coin. The zloty became the official currency in 1528 and remained legal tender until 1850. At this point, it was replaced by the Russian ruble and then the Polish marka. 
2. The second zloty was introduced in 1924. Years of hyperinflation after World War I caused the conversion rate of a single zloty to 1,800,000 markas. The PLN was pegged to the U.S. dollar. Ongoing economic crisis and inflation continued to haunt the Polish currency. The country continued to print and use the zloty through World War II and later the Soviet occupation.
3. In 1950, the replacement of all existing Polish zloty began the third zloty period. Hard financial times continued for the country, forcing Poland into debt lasting until 1994. These notes carried the symbol PLZ. As Poland transitioned away from the 澳洲幸运5官方开奖结果体彩网:Communist party with the collapse of the Soviet Union and into a 澳洲幸运5官方开奖结果体彩网:free market economy, inflation soared. For a brief time in the 1990s, there were denominations of 500,000 and one million zloty. Once inflation subsided, the larger denominated notes were no longer needed and were converted into smaller denominations.
4. During the fourth zloty period, the government exchanged new banknotes for the existing currency. However, the early issued new notes were easy to counterfeit. In 1995, the 澳洲幸运5官方开奖结果体彩网:redenomination of all money happened and the old PLZ ceased to be legal tender.

The Bottom Line

The Polish złoty (PLN) is the official currency of Poland. Widely used and accepted throughout the country, it is the primary means of conducting financial transactions. Cash is commonly used for smaller purchases, while electronic payments are widely accepted. While neighborin🎶g countries may use the euro, it is not accepted in Poland, making it necessary to exchange currency for złoty.