National Bank of Poland Reports Increased Losses in 2023 Amid Zloty Strengthening

The National Bank of Poland (NBP) disclosed a loss of 20.8 billion zlotys ($5.2 billion) for the fiscal year 2023, marking a notable rise from the previous year’s loss of 16.9 billion zlotys, as per the bank’s financial report cited by Reuters on Wednesday.

The bank attributed this loss primarily to the appreciation of the zloty, which has gained value since the parliamentary election in October and is currently estimated at approximately 25 cents. This appreciation significantly impacted the bank’s financial performance by affecting the value of reserves held, including those denominated in foreign currencies.

In its statement released on Wednesday, the central bank revealed that the negative impact from exchange rate differences in 2023 amounted to 31.0 billion zlotys.

Against the backdrop of these financial results, Poland’s new ruling coalition, which assumed power late last year, is pushing to summon NBP chief Adam Glapinski before a state tribunal, citing concerns over the bank’s performance.

Glapinski faces allegations from the new government, including accusations of lacking independence from the previous nationalist administration. Additionally, he is accused of violating constitutional regulations prohibiting the bank from financing government borrowing during the COVID-19 pandemic, providing misleading information to the finance ministry regarding the bank’s performance, and falsely claiming in August that the bank could achieve a profit of $6.6 billion in 2023.

In response to these allegations, Glapinski asserts that he has consistently discharged his duties independently of political influence. He attributes the variance between the bank’s projected results in August and the actual loss to the zloty’s strengthening following the election.



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