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Złoty (literally meaning "golden", plural: złote or złotych, depending on the number) is the Polish currency unit.
As a result of hyperinflation in the early 1990s, the decimal point on the currency was moved by four places. Thus, on January 1, 1995, 10,000 old złotych (PLZ) became one new złoty (PLN).
Historical Currencies
ZÅ‚oty in the Kingdom of Poland and Polish-Lithuanian Commonwealth
The złoty is a traditional Polish currency unit dating back to the Middle Ages. Initially, in the 14th and 15th centuries the name was used for all kinds of foreign golden coins used in Poland, most notably German and Ruthenian ducats. In 1496 the Sejm approved the creation of a national currency and its value was set at 30 Prague groschen, later converted to local Polish term grosz.
It was not the only currency in use and the name was used for the 30 groszy coin called the Polish golden (polski złoty), as opposed to the Red golden - czerwony złoty or Rhine golden - złoty reński, also in circulation at the time. However, with time and parity drop the real value of Polish złoty dropped slightly to the level of foreign coins. That was when a fixed rate of 1 złoty polski to 30 grosz (sometimes referred to as florin) and 1 foreign ducat (dubbed złoty czerwony or red złoty) to ca. 5 Polish złoty's.
Following the monetary reform carried out by King Stanisław August Poniatowski, the złoty became Poland's official currency and its exchange rate of 1 zł to 30 gr was confirmed. Until 1787, the złoty was tied to the Conventionsthaler of the Holy Roman Empire, with 8 złoty equal to one Conventionsthaler. Two debasements of the currency occured in the years before the final partition of Poland.
ZÅ‚oty in the Duchy of Warsaw
The złoty remained in circulation after the Partitions of Poland and the Duchy of Warsaw issued coins denominated in grosz, złoty and Talar, worth 6 złoty. Talar banknotes were also issued.
ZÅ‚oty in the Congress Kingdom 1815-1850?
The Warsaw mint issued złoty until 1841, with a fixed exchage rate between the Polish and Russian currencies of 1 kopeck = 2 grosz. The Polish monetary system was banned by the Russians following the failed January Uprising. However, the golden coins remained in use until the early 20th century, much like other golden coins of the epoch, most notably golden roubles (dubbed świnka, or piggy) and golden pounds.
1-marka banknote from 1917
Polish marka 1916-1924
From 1916 to 1924, the Polish currency was not the złoty, but the marka. It was initially equivalebnt to the German mark.
2-zloty banknote from 1936
Polish ZÅ‚oty 1924-1939
The modern złoty was introduced by Władysław Grabski in 1924 following the hyperinflation and monetary chaos of the years after World War I. It replaced the Polish mark which had been in use since 1916. Denomination: 1 złoty = 100 groszy = 0.1687 grams of pure gold; 1 złoty = 1 800 000 Polish Marks, 1 1939 złoty = 8 2004 złoty.
50-zloty banknote from 1940
ZÅ‚oty of General Government
On December 15, 1939, the new Emissionsbank im Generalgouvernement is established by the General Government, set up by Nazi Germany. In May 1940, old banknotes of Polish ZÅ‚oty 1924-1939 are stamped by the new entity. The money exchange was limited per individual, and limits varied to status of person (Pole, Jew etc.). The fixed exchange rate 2 ZÅ‚ote = 1 Reichsmark was established.
Polish ZÅ‚oty 1944-1950
The Polish ZÅ‚oty was introduced after July 22, 1944, redenominated in 1948, and replaced through another currency exchange in 1950.
Polish ZÅ‚oty PLZ
Pre-1975 50 zloty banknote
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The Polish ZÅ‚oty was established as the official currency of the People's Republic of Poland by the currency exchange in 1950. It was replaced from 1975-1978 with new design and again replaced after redenomination in 1994. From 1 January 1990 it was a convertible currency, issued by the Narodowy Bank Polski.
Between 1950 and 1990, a unit known as the ZÅ‚oty dewizowy was used as an artificial currency for calculation purposes only.
New Polish ZÅ‚oty PLN
New Polish ZÅ‚oty is the current currency of Poland and was introduced on January 1, 1995. The denomination rate was 10 000 Polish ZÅ‚oty to 1 New Polish ZÅ‚oty. The emission bank is the Narodowy Bank Polski.
Current Coins
- 1 grosz
- 2 grosze
- 5 groszy
- 10 groszy
- 20 groszy
- 50 groszy
- 1 złoty
- 2 złote
- 5 złotych
Banknotes
- 10 złotych
- 20 złotych
- 50 złotych
- 100 złotych
- 200 złotych
Future
Poland's accession to the European Union (in May 2004) means that the country will eventually adopt the euro, though not immediately. The introduction of the euro is unlikely before 2010 (according to Standard & Poor's analysis), and certain conditions could further delay introduction. The Polish government stated (in June 2004) that it would like to join the euro in 2008, this forecast mainly being made due to Poland's recent strong quarterly GDP growth and the reduction of the budget deficit. The złoty remains as the official currency for the foreseeable future, with the euro acting in a secondary role.
External links
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