Polish Zloty (PLN) – Forex Trading

The Polish zloty (PLN) is considered to be an exotic currency in the Forex market.

Poland is the world’s twentieth largest economy.

Does Your Economy Run a Trade Surplus or a Trade Deficit?

Poland runs a trade deficit of $12.33 billion, giving the country a ranking of 177 out of the 190 countries tracked by the CIA in The World Factbook.

What Does Your Economy Export?

Poland exports machinery, transport equipment, intermediate manufactured goods, miscellaneous manufactured goods, food, and live animals.

According to the World Trade Organization (WTO), Poland exports $134.5 billion in goods and merchandise compared to only $28.8 billion in commercial services. The WTO breaks down those exports as follows:

Goods and Merchandise

• Agricultural products: 12.3 percent
• Fuels and mining products: 6.7 percent
• Manufactures: 80.8 percent

Commercial Services

• Transportation: 30.1 percent
• Travel: 31.3 percent
• Other commercial services: 38.7 percent

To Whom Does Your Economy Export?

The WTO ranks the following countries as the top destinations for exports from Poland:

• European Union: 77.9 percent
• Russian Federation: 5.2 percent
• Ukraine: 3.7 percent
• Norway: 1.7 percent
• United States: 1.4 percent

What Does Your Economy Import?

Poland imports machinery, chemicals, semifinished goods, fuels, and transport equipment.

According to the WTO, the country imports $146.6 billion in goods and merchandise compared to only $23.7 billion in com­mercial services. The WTO breaks down those imports as follows:

Goods and Merchandise

• Agricultural products: 9.7 percent
• Fuels and mining products: 12.4 percent
• Manufactures: 75.3 percent

Commercial Services

• Transportation: 21.8 percent
• Travel: 30.9 percent
• Other commercial services: 47.3 percent

From Whom Does Your Economy Import?

The WTO ranks the following countries as the top sources of imports to Poland:

• European Union: 62.0 percent
• Russian Federation: 9.8 percent
• China: 8.0 percent
• South Korea: 2.5 percent
• United States: 2.2 percent

Do You Have an Attractive Government Debt Market?

Poland currently has a Moody’s rating of Aa1. It received this lat­est rating on May 24, 2006. This most recent rating was an upgrade from the A2 rating that the country had held previously. This is a positive sign for the country’s government debt market.

Do You Have an Overinvolved Government

The Polish government has been known to intervene in the cur­rency market from time to time.

What Economic Announcements Are Important to You?

When you are watching the economic announcements coming out of Poland, make sure that you keep your eye on the following:

• Interest rates
• Employment
• Inflation
• Gross domestic product (GDP)
• Trade balance

Are You a Safe-Haven Currency?

No, the Polish zloty is not considered to be a safe-haven currency.

How Can I Trade You?

You can trade the Polish zloty using either of the following:

• Spot Forex
• Forex futures