Finance Minister: Zloty Can be Reserve Currency
- New Europe Investor
- November 12, 2015
With election winners, Law & Justice giving Polish politics a shake up, the newly appointed Finance Minister, Pawel Szalamacha has put an end to the euro debate for good.
Speaking to Reuters, he stated that his government has absolutely no intention of adopting the euro. He believes the presence of the euro in Southern Europe has hit their industrial base by making them less competitive, a primary reason for their sluggish economies.
His subsequent comments were a little more surprising. He explained that if the country’s economy could double in size, the zloty could become one of the world’s reserve currencies, albeit a smaller one.
If current growth rates continue, the Polish economy could indeed double within 20 years. Whether the zloty can be a global reserve currency is up for debate.
Under the terms of the Maastricht Treaty, all countries must at sometime in the future prepare themselves for euro adoption.