Mateusz Szczurek becomes a new Polish FinMin, CNB does not plan to change the floor for the EUR/CZK

In a Polish government´s reshuffle yesterday, Mateusz Szczurek replaced the head of the Ministry of Finance, Jacek Rostowski. Mr. Rostowski, who served also as a Deputy Prime Minister, is among government members removed from the office in an attempt of Prime Minister Tusk to boost his fading popularity. Mr. Tusk is associated with some controversial measures, such as pension system overhaul implemented earlier this year and decided to continue as planned also in 2014, despite a wave of protests. The replacement of Mr. Rostowski had some impact on the zloty but we think the pressure should be short-lived as we do not see any major changes in economic policy following the appointment of Mr. Szczurek. Economic recovery in Poland appears to be well founded and we expect the zloty to strengthen during months ahead. As we already pointed out, the Polish currency might run particularly well compared to the koruna, as the way for koruna’s appreciation is virtually closed and the economic recovery in Poland gathers momentum.

Meanwhile, the Czech koruna regained part of its losses yesterday, after CNB Governor Singer had reiterated that the Czech National Bank does not plan to change the floor for the EUR/CZK exchange rate. He calmed thereby jittery markets after Lubomir Lizal, a member of the CNB board, had said in an interview on Tuesday that he could imagine realistic scenarios moving the CNB to shift the exchange rate floor to EUR/CZK 28.0.