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Survey: Geopolitics the Biggest Challenge for PLN

Polish FX
executives say that geopolitics is the biggest issue facing its country and
currency this year, according to the results of a Bloomberg FX survey issued

In the
survey 56% of Warsaw FX professionals said that the single biggest challenge
facing corporations in the country will be navigating geopolitical challenges,
while one-quarter say it will be hedging against market volatility.

56% of those who responded to the survey, the most significant issue affecting
the zloty in 2017 will be political developments between Poland and Europe. Other
survey respondents thought that the zloty could be most affected by geopolitics
or moves by central banks in the US and Europe.

The survey
showed that 54% of the respondents expect the EUR/PLN exchange rate will remain
between 4.00 and 4.25 to the end of 2017. 
That exchange rate will go higher 34% said, while only 13% said it would
go below 4.00.

To deal
with market uncertainties, 53% of survey respondents said they have increased
their hedging of the zloty. The rest said they are either naturally hedged
against zloty weakness, choose not to hedge, or do not have the tools to hedge.

Asked what
single currency is the safest best in 2017, respondents said none and were
split between the US dollar (34%) and the Japanese yen (25%). Very few said
they believe in the safety of the euro, the yuan, the zloty, or the pound.

When asked
about their readiness to meet the new European trading rules under MiFID II,
which will go into effect in January, more than half (58%) said they are ready
now or will be by then, but 29% said they are not even sure how to get

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Colin Lambert

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