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Tusk Flags Preference For "Balanced" FX Rate, Finance Ministry Holds Bond Auction

POLAND
  • Prime Minister Donald Tusk said that his party and its coalition partners may rule in 11 out of 16 regions following last weekend's elections, as the opposition Law and Justice (PiS) got the largest number of votes in 7 regions but has limited coalition-building abilities. He noted that a Cabinet reshuffle is likely around the turn of spring as some ministers are planning to run for seats in the European Parliament. On that front, the ruling coalition is likely to replicate the format used in the recent regional elections and contest the European election as three blocs (as the Civic Coalition, the Third Way and the Left). The Premier also said that there is "no interest" in PLN appreciation going too far and it would be best to have a "balanced exchange rate," as EUR/PLN showed at its lowest levels since 2020.
  • NBP First Deputy Governor Marta Kightley told PAP news wire that the government has not responded to a conciliatory letter sent by Governor Adam Glapinski. Kightley confirmed that she would replace the Governor should he get suspended, but also stressed that she does not expect this to happen amid legal barriers to taking action against a sitting Governor.
  • The Finance Ministry will offer OK0426, PS0729, WZ1129, DS0432 and DS1034 bonds at an auction today.

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