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Zloty Extends Gains Amid Talk Of Increased Purchases By FinMin

PLN

EUR/PLN on the back of suspicions that Poland's Finance Ministry may have been converting more of its foreign inflows in the market rather than via the NBP which would have boosted the domestic currency. The theory has been circulated by Citibank in a research note, based on a decline in conversions conducted through the central bank last year, albeit they noted that there is no clear data for 2Q2023 when the zloty staged its sharpest rally. When this is being typed, EUR/PLN sits at PLN4.5039, down 332 pips on the day, with May 17 cyclical low of PLN4.4784 in sight.

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