Ella 
USD/PLN maintains its upward momentum ahead of Wednesday’s much-anticipated interest rate decision from the Federal Reserve (Fed). The Polish zloty (PLN) remains in trouble as central bank missteps, EU infighting and government scandals rock the ruling Law and Justice party (PiS) ahead of next month’s crucial parliamentary elections.
With inflation in Poland still above 10%, the National Bank of Poland (NBP) recently cut interest rates, confusing market participants everywhere. Adam Glapinski, the head of the National Bank of Poland, has been accused of using the central bank’s authority to support the Polish People’s Party.
Adam Glapinski is an open supporter of the Polish People’s Party, and the unexpected interest rate cut by the Polish bank is considered a way to temporarily ease borrowing costs to increase the Polish People’s Party’s vote share in the upcoming general election.
Poland recently took steps to ban more imports of Ukrainian grains, citing the need to protect its economy and domestic farmers. Ukrainian grain shipments have increased in recent months as Russia blocked Ukrainian exports, leaving a glut of grain on the market and flooding into neighboring countries.
The European Union (EU) recently allowed a ban on Ukrainian grain surpluses to lapse, and Poland came under fire after President Andrzej Duda announced that Poland would ignore EU directives and introduce its own ban on Ukrainian grains.
Poland and several other countries in the eastern EU are facing formal charges and proceedings from Ukraine at the EU Trade Court and the World Trade Organization (WTO) over the grain ban.
Polish President Andrzej Duda and his Polish Unity Party (PiS) were accused this week of profiting from the sale of visas to migrants who use them to travel to countries they would normally be barred from entering.
Poland’s Freedom Party has taken steps to contain the fallout, unexpectedly firing the foreign minister in charge of consular affairs and terminating all contracts with outside companies handling visa matters. The head of Poland’s foreign ministry’s legal and compliance department was also dismissed.
This all comes as Poland faces fierce parliamentary elections, in which the Polish Socialist Party is seen struggling to maintain its vote share.
