Diplomatic solution of Syrian crisis helps CEE currencies
Polish pension funds hit by planned new restrictions
On Friday, CEE market sentiment was positive mainly owing to progressing talks between Russia and the US on a diplomatic solution of the Syrian civil war. The zloty, the forint as well as the koruna strengthened, although gains of the Czech currency were limited due to existing threat of FX interventions against the koruna before the next week´s CNB Board meeting.
The zloty recorded largest gains among regional currencies, in spite of a statement by the Polish deputy finance minister Wojciech Kowalczyk, who said that the Finance Ministry was taking into consideration the possibility of banning pension funds from buying foreign bonds. Although private pension funds currently do not put money into sovereign foreign debt, recent measures draining pension funds of money invested in domestic government bonds made exploring foreign bonds markets more attractive.
Read the full report: FX Daily
KBC