Polish central bank records $5b loss in ’23

The National Bank of Poland (NBP) reported a loss of 20.8 billion zlotys ($5.2 billion) in 2023, a significant increase from the previous year’s loss of 16.9 billion zlotys, according to the bank’s financial report on Wednesday cited by Reuters.

The bank attributed this loss to the strengthening of the zloty, which has appreciated since the parliamentary election in October and is currently valued at about 25 cents.
This appreciation has significantly impacted the bank’s financial results by affecting the amount of reserves held, including those in foreign currencies.

The central bank released a statement on Wednesday, revealing that the negative result from exchange rate differences in 2023 amounted to 31.0 billion zlotys.

Amid these financial results, Poland’s new ruling coalition, which assumed power late last year, is seeking to bring NBP chief Adam Glapinski before a state tribunal, partly due to the bank’s performance.

Glapinski has been accused by the new government of lacking independence from the previous nationalist government.

He also faces allegations of violating constitutional rules that prohibited the bank from financing government borrowing during the COVID-19 pandemic, misleading the finance ministry about the bank’s results, and falsely claiming in August that the bank could make a $6.6 billion profit in 2023.

In response to these accusations, Glapinski maintains that he has always performed his duties independently of political influence. He attributes the discrepancy between the August estimate of the bank’s results and the actual loss to the strengthening of the zloty since the election.