Good news from the NBP. In 2019, the Polish central bank generated considerable profit. We are talking about PLN 7 billion and PLN 828.5 million. Under the law on the state budget, it will now receive PLN 7 billion and PLN 437.1 million. It is worth adding that the rest of the profit is so-called contribution to the NBP reserve fund.
What does NBP earn from?
It is worth asking yourself now: what does NBP earn at all? It is about managing foreign exchange reserves in the amount of PLN 7.6 billion. Added to this is a positive result on exchange differences of PLN 5.6 billion.
“The positive result from the management of foreign exchange reserves consists primarily of interest on term deposits and debt securities in foreign currency. The NBP also earned on the sale of these securities and the cost of lowering the market value of the securities below their purchase price. “
– he adds money.pl.
Foreign exchange differences were significant here. – Simply put, an increase in the zloty’s value negatively affects the NBP’s financial result. In order to counteract the negative impact of the zloty exchange rate fluctuations on the NBP financial result, the Act on the NBP obliges the bank to create a reserve to cover the risk of changes in the zloty exchange rate to foreign currencies – Krzysztof Janoś wrote on Money. – The rules for creating and dissolving this provision are determined by the Monetary Policy Council. As at December 31, 2019, the provision amounted to PLN 6.7 billion – added.
NBP successes can be enjoyed, but it is a doubtful consolation in the growing time inflation. The central bank is responsible for defending our currency and this fight is worse. Eurostat calculated that the increase in prices of consumer goods in Poland increased in March to 3.9 percent. yoy. You can read more about it here. We have already written here that our country is leading in terms of price increases compared to other EU countries.
The high inflation awaits us has long been warned by prof. Krzysztof Piech, whom many know, among others from the cryptocurrency market and blockchaina. Unfortunately, the Monetary Policy Council did not raise interest rates during good times. These have gone down since the economic crisis began.
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