The złoty; sign: zł; code: PLN), which literally means "golden", is the currency of Poland.
The modern złoty is subdivided into 100 groszy. The recognized English form of the word is
zloty, plural zloty or zlotys. The currency sign zł, is composed of Polish small letters
z and ł. As a result of inflation in the early 1990s,
the currency underwent redenomination. Thus, on January 1, 1995, 10,000 old złotych became
one new złoty.
History
First złoty
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 gold coins used in Poland, most notably Venetian and Hungarian
ducats. In 1496 the Sejm approved the creation of a national currency, the złoty, and its
value was set at 30 groszy, a coin minted since 1347 and modelled on the Prague groschen.
The grosz was subdivided into 2 półgrosz or 3 solidi.
The name złoty was used for a number of different coins, including the 30 groszy coin called
the polski złoty, the czerwony złoty and the złoty reński, which were in circulation
at the time. However, the value of the Polish złoty dropped over time relative to these
foreign coins and it became a silver coin, with the foreign ducats eventually circulating
at approximately 5 złotych. Following the monetary reform carried out
by King Stanisław August Poniatowski, the złoty became Poland's official currency and
the exchange rate of 1 złoty to 30 groszy was confirmed. Until 1787, the złoty was
tied to the Conventionsthaler of the Holy Roman Empire, with 8 złoty equal to one Conventionsthaler
and, consequently, 4 groschen equal to the złoty. Two debasements of the currency occurred
in the years before the final partition of Poland.
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.
Congress Poland From 1816, the złoty was issued by the Russian-controlled
Congress Poland, with a fixed exchange rate between the Polish and Russian currencies
of 1 kopeck = 2 grosze, or 15 kopeck = 1 złoty. The Warsaw mint issued grosz and złoty until
1832, when it began to issue coins denominated in both Polish and Russian currencies. From
1842, the Warsaw mint issued regular type Russian coins along with some coins denominated
in both grosz and kopeck. In 1850, the last coins bearing Polish denominations were minted.
Between 1835 and 1846, the Free City of Kraków also issued a currency, the Kraków złoty
Currencies of Congress Poland Ruble and Mark
From 1850, the only currency issued for use in Congress Poland was the rubel consisting
of Russian currency and notes of the Bank Polski. The monetary system of Congress Poland
was unified with the Russian Empire following the failed January Uprising in 1863. However,
the gold coins remained in use until the early 20th century, much like other gold coins of
the epoch, most notably gold roubles and sovereigns. Following occupation of the Congress Poland
by Germans during World War I in 1917, the rubel was replaced by the marka, a currency
initially equivalent to the German Papiermark. Second złoty
Second Republic
The złoty was reintroduced as Poland's currency by Władysław Grabski in 1924, following
the hyperinflation and monetary chaos of the years after World War I. It replaced the marka
at a rate of 1 złoty = 1,800,000 marek and was subdivided into 100 groszy. The złoty
was pegged at 0.1687 grams pure gold. 1 1939-złoty = 8 2004-złoty.
General Government
On December 15, 1939, the new Bank Emisyjny was established by the General Government,
itself set up by Nazi Germany. In May 1940, old banknotes of 1924–1939 were stamped
by the new entity. The money exchange was limited per individual, the limits varied
according to the status of the person. The fixed exchange rate 1 Reichsmark = 2 złote
was established. A new issue of notes appeared in 1941. The General Government also issued
coins using similar designs to earlier types but with cheaper metals.
Lublin Poland New złoty banknotes were introduced after
July 22, 1944 by the Narodowy Bank Polski. They circulated until 1950.
Third złoty In 1950, a new złoty was introduced, replacing
all earlier issues at a rate of one hundred to one. The new banknotes were dated 1948,
while the new coins were dated 1949. Initially by law from 1950 1 złoty = 0.222168 g of
pure gold, see also Dziennik Ustaw 50, 459. From January 1, 1990 it was a convertible
currency. Between 1950 and 1990, a unit known as the
złoty dewizowy was used as an artificial currency for calculation purposes only. It
existed because at the time the złoty was not convertible and its official rate of exchange
was set by the Government, and there existed several exchange rates depending on the purpose
of the transaction and who was exchanging, i.e. a given amount in złoty could be exchanged
for say US dollars at one of several official exchange rates depending on what was to be
bought for the hard currency and the company that was buying foreign exchange; it worked
similarly when a company had some earnings in Western currency and wanted to convert
them into złotych. The exchange rate did not depend on the amount being converted.
Visitors from countries outside of the Soviet Bloc were offered a particularly poor exchange
rate. Concurrently, the private black-market exchange rate contrasted sharply with the
official government exchange rate until the end of Communist rule in 1989 when official
rates were tied to market rates. Fourth złoty
The new Polish złoty is the unofficial name of the current currency of Poland, introduced
on January 1, 1995 as a result of the redenomination of the old currency. The official name of
the Polish currency did not change since the Polish currency law of 1950, which defines
the official currency as the złoty, up to one million denominated notes remains in effect.
The redenomination rate was 10,000 old Polish złoty to 1 new Polish złoty. The issuing
bank is the National Bank of Poland. See also original law from 7 July 1994 Dziennik Ustaw
Nr 84, 386 Future
Conditions of Poland's joining the European Union oblige the country to eventually adopt
the euro, though not at any specific date and only after Poland meets the necessary
stability criteria. Serious discussions of joining the Eurozone have ensued. However,
article 227 of the Constitution of the Republic of Poland will need to be amended first, so
it seems unlikely that Poland will adopt the Euro before 2019. Public opinion research
by CBOS from March 2011 shows that 60% of Poles are against changing their currency.
Only 32% of Poles want to adopt the Euro, compared to 41% in April 2010.
Coins
First złoty coins In the late 18th century, coins were issued
in denominations of ⅓, ½, 1, 3, 6, 7½, 10 and 15 groszy, 1, 2, 4, 6 and 8 złotych.
The ⅓ and ½ grosz were denominated as the solidus and polgrosz, whilst the 7½ and 15
groszy were denominated as 1 and 2 silver groschen. Coins up to 3 grosz were minted
in copper, those between 6 and 15 grosz were billon whilst the denominations from 1 złoty
upward were in silver. The Duchy of Warsaw issued copper 1 and 3
grosze, billon 5 and 10 groszy and silver ⅙, ⅓ and 1 talar. After 1816, the Congress
Poland issued copper 1 and 3 grosze, billon 5 and 10 groszy, silver 1, 2, 5 and 10 złotych,
and gold 25 and 50 złotych. During the insurrection of 1831, coins were minted for 3 and 10 groszy,
2 and 5 złotych. Between 1832 and 1834, coins denominated in
both Polish and Russian currencies were issued, for 1 złoty, 2 złote, 5 złotych, 10 złotych
and 20 złotych. These were issued, along with the copper and billon coins, until 1841.
In 1842, Russian coins were introduced, supplemented by 40 groszy and 50 groszy coins. These two
coins were issued until 1850. Second złoty coins
In 1924, coins were introduced in denominations of 1, 2, 5, 10, 20 and 50 groszy, 1 and 2
złote. The lowest three denominations were first minted in brass, then in bronze. The
10, 20 and 50 groszy were in nickel, with the higher denominations in silver. Gold 10
and 20 złotych coins were minted in 1925. Silver 5 złotych coins were introduced in
1928. The size of the silver coins was reduced in 1932, a move accompanied by the introduction
of silver 10 złotych coins. During the German occupation of World War II, 1, 5, 10 and 20
groszy coins were issued in zinc and 50 groszy in nickel plated iron or iron.
Third złoty coins In 1950, coins were issued for 1, 2, 5, 10,
20 and 50 groszy and 1 złoty. All denominations were minted in aluminium. Previously the 5
groszy was minted in bronze, the denominations above 5 groszy minted in cupro-nickel and
1 and 2 groszy were in aluminium. From 1957, aluminium coins for 5, 10, 20 and 50 groszy
and 1 złoty were issued, with aluminium 2 and 5 złotych introduced in 1958. Cupro-nickel
10 and 20 złotych followed in 1959 and 1973, respectively. Brass 2 and 5 złotych were
introduced in 1975, reverting to aluminium in 1989. In 1990, 1, 10, 20, 50 and 100 złotych
coins were issued, although they saw little circulation due to the high inflation occurring
at that time. Fourth złoty coins
Coins were introduced in 1995 in denominations of 1, 2, 5, 10, 20 and 50 groszy, 1, 2 and
5 złotych. The 1, 2, and 5 groszy are minted in brass, and the 10, 20 and 50 groszy and
1 złoty in cupro-nickel, whilst the 2 and 5 złotych are bimetallic. 10, 20, 25, 50,
100, 200 and 500 złotych coins also exist and are legal tender, but are not in normal
circulation. The 5, 10, 20 zlotych coins are often made of silver whilst the 25, 50, 100,
200, 500 zlotych coins are made of gold. They are minted by the Mint of Poland and issued
by the Bank of Poland for the main purpose of numismatics. 2 zl coins are issued every
year, an average of 12 annually, made of Nordic Gold they are legal tender, but not recommended
for circulation Emission
The emission of zloty and grosz coins are shown in the tables.
Banknotes First złoty banknotes
In 1794, treasury notes were issued in denominations of 5 and 10 groszy, 1 złoty, 4 złote, 5,
10, 25, 50, 100, 500 and 1000 złotych. The Duchy of Warsaw issued notes for 1, 2 and
5 talarów. In 1824, the Bank Kassowy Królestwa Polskiego
issued notes for 10, 50 and 100 złotych. The Bank Polski issued notes dated 1830 and
1831 in denominations of 1, 5, 50 and 100 złotych, whilst assignats for 200 and 500
złotych were issued during the insurrection of 1831. From 1841, the Bank Polski issued
notes denominated in rubel. Second złoty banknotes
In 1924, along with provisional notes for 1 and 5 groszy, the Ministry of Finance issued
notes for 10, 20 and 50 groszy, whilst the Bank Polski introduced 1, 2, 5, 10, 20, 50,
100, 500 and 1000 złotych. From 1925, the Ministry of Finance issued 2 and 5 złotych
notes, before they were replaced by silver coins, and the Bank Polski issued 5, 10, 20
and 50 złotych notes, with 100 złotych only reintroduced in 1932. In 1936, the Bank Polski
issued 2 złote notes, followed in 1938 by Ministry of Finance notes for 1 złoty.
In 1939, the General Government overprinted 100 złotych notes for use before, in 1940,
the Bank Emisyjny w Polsce was set up and issued notes for 1, 2, 5, 10, 20, 50, 100
and 500 złotych. After liberation, notes were introduced by the Narodowy Bank Polski
for 50 grosz, 1, 2, 5, 10, 20, 50, 100 and 500 złotych, with 1000 złotych notes added
in 1945. Third złoty banknotes
In 1950, new notes, were introduced for 2 złote, 5, 10, 20, 50, 100 and 500 złotych.
1000 złotych notes were added in 1962. 200 and 2000 złotych notes were added in 1976
and 1977, followed by 5000 złotych notes in 1982. The late 1980s and early 1990s saw
high inflation in Poland and led to the introduction of notes in denominations of 10,000, 20,000,
50,000, 100,000, 200,000, 500,000, 1,000,000 and 2,000,000 złotych. A possible 5,000,000
zlotych banknotes with the portrait of Marshall Jozef Pilsudski was in planning, but scrapped
after the fall of Communism. These notes were valid until the end of 1996. They could be
exchanged at the National Bank of Poland until December 31, 2010; they are no longer legal
tender. Fourth złoty banknotes
In 1995, notes were introduced in denominations of 10, 20, 50, 100 and 200 złotych. Since
2006 several commemorative banknotes for collectors have been issued.
A few years after redenomination in 1995, the National Bank of Poland wanted to introduce
a 500 złotych banknote, but a detailed economic analysis has shown that there is no such need,
and the plans were abandoned. Exchange rates
See also
Commemorative coins of Poland Economy of Poland
Historical coins and banknotes of Poland Poland and the euro
Polish coins and banknotes Footnotes
External links Banknotes issued by the NBP
Coins issued by the NBP A fan-shaped 10 złoty commemorative coin
released in 2004 National Bank of Poland – Schedule of exchange
rates "English" counterfeit banknote 500 zloty 1940
issued by Bank Emisyjny Chosen Polish banknotes
Polish Zloty coins catalog information A numismatic catalog with over 650 Polish
coins "NBP Safe" - official app dedicated to Polish
money