Economy, Currency and Banking

The zloty, divided into 100 groszy, is the basic unit of currency in Poland. As a result of Poland’s extremely high inflation rate in the early 1990s, the exchange rate for the zloty peaked at about 24,000 to the U.S.$1 in 1994. In January 1995 a sweeping currency reform replaced 10,000 old zloties with one new zloty. The exchange rate in 2000 averaged 4.35 zloties to the U.S.$1.

The National Bank of Poland (founded in 1945) serves as the country’s central bank. Other important banks include the Bank of Food Economy and the Export Development Bank. A large number of private banks were also established after Communism collapsed, some of which have since failed or been involved in corruption scandals. Many foreign banks have established branches in Poland as well. Of the more than 1,700 banks operating in Poland in the mid-1990s, about 100 had several branches throughout the country while the bulk were small regional or specialized cooperative banks. A stock exchange was established in Warsaw in 1991.