What is Money Called in Poland?

The official currency of Poland is the złoty (pronounced “ZWOH-tee”). The złoty is subdivided into 100 groszy (pronounced “GROH-shi”). Therefore, when you’re in Poland, you’ll be dealing with złote (the plural of złoty) and grosze (the plural of grosz).

Delving Deeper into the Złoty

The name “złoty” literally translates to “golden” in Polish. This is a historical reference to the gold coins that were once a significant part of the Polish monetary system. While the modern złoty isn’t made of gold, the name serves as a reminder of its precious metal heritage.

The word “grosz” is derived from the Latin “grossus denarius,” meaning “thick penny.” Many European currencies, including the German “Groschen” and the Czech “groš,” share similar etymological roots. The term reflects the historical importance of thicker, more substantial coinage compared to smaller denominations.

Historical Context of the Polish Currency

The złoty has a long and complex history, dating back to the Middle Ages. It was first officially established as Poland’s currency in the 14th century. However, its use has been interrupted and reformed multiple times throughout Polish history, often due to political instability, wars, and economic crises.

Following World War II, Poland underwent a period of communist rule, during which the złoty was heavily regulated and its value artificially fixed. After the fall of communism in 1989, Poland embarked on a path of economic reform, which included a significant currency redenomination in 1995. This redenomination, often referred to as “denominacja,” involved replacing 10,000 old złote with one new złoty. This move was intended to combat hyperinflation and restore confidence in the Polish currency.

Current State of the Złoty

Today, the złoty is a floating currency, meaning its value is determined by market forces in relation to other currencies. The National Bank of Poland (Narodowy Bank Polski) is responsible for issuing and managing the złoty, as well as maintaining price stability. Poland is a member of the European Union, but it has not yet adopted the euro. While there have been discussions and plans for eventual euro adoption, no specific timeline is currently in place. The debate surrounding euro adoption is ongoing, with proponents highlighting the potential economic benefits and critics expressing concerns about the loss of monetary sovereignty.

Identifying Polish Currency

Złoty banknotes come in denominations of 10, 20, 50, 100, 200, and 500 złotych. Each denomination features a prominent Polish historical figure on the obverse (front) side. For example, the 20 złoty note features King Bolesław I the Brave. The reverse side typically depicts a significant historical event or symbol related to the featured figure.

Grosz coins are available in denominations of 1, 2, 5, 10, 20, and 50 groszy. All grosz coins feature the Polish coat of arms, a white eagle on a red shield, on the obverse side. The reverse side displays the denomination and decorative elements. Knowing these features will help you quickly and accurately identify Polish currency.

Frequently Asked Questions (FAQs) about Polish Currency

Here are some frequently asked questions to further clarify aspects of the złoty and its use in Poland.

1. What is the currency code for the Polish Złoty?

The currency code for the Polish złoty is PLN. This is the standard abbreviation used in international finance and currency exchange.

2. Where can I exchange currency for Polish Złoty?

You can exchange currency for Polish złoty at banks, currency exchange offices (kantors), and airports. Kantors often offer more competitive exchange rates than banks, especially in tourist areas.

3. Are credit cards widely accepted in Poland?

Yes, credit cards are widely accepted in Poland, especially in larger cities and tourist areas. Visa and Mastercard are the most commonly accepted cards. However, it’s always a good idea to carry some cash, particularly when visiting smaller towns or local markets.

4. Can I use Euros in Poland?

While Poland is a member of the European Union, the official currency is the złoty. Euros are not widely accepted, although some businesses, particularly in tourist areas, may accept them at a less favorable exchange rate. It’s always best to use złoty for transactions.

5. Is it better to exchange currency before traveling to Poland or after arriving?

This depends on various factors, including the exchange rates offered in your home country and the fees charged by banks and exchange offices. Generally, you may find better rates in Poland, but it’s wise to compare rates and fees before making a decision. Exchanging a small amount of currency before traveling can be helpful for initial expenses upon arrival.

6. What are the current exchange rates for the Polish Złoty?

Exchange rates fluctuate constantly based on market conditions. You can find current exchange rates on websites like Google Finance, Bloomberg, or XE.com. It’s always advisable to check the exchange rate before exchanging currency.

7. Are there any ATMs in Poland that dispense foreign currency?

Some ATMs in Poland, particularly those located in airports and tourist areas, may dispense foreign currency, such as Euros or US dollars. However, these ATMs often charge higher fees and offer less favorable exchange rates. It’s generally more cost-effective to withdraw złoty from a standard ATM.

8. Is it customary to tip in Poland?

Yes, tipping is customary in Poland. A typical tip is around 10-15% for good service in restaurants, cafes, and bars. It’s also common to tip taxi drivers and hairdressers.

9. What should I do with leftover Polish Złoty before leaving Poland?

You can exchange leftover złoty back into your home currency at banks or currency exchange offices. Alternatively, you can keep them for a future trip to Poland or donate them to a charity.

10. Are there any restrictions on bringing currency into or out of Poland?

Poland follows EU regulations regarding currency import and export. You are required to declare cash amounts exceeding €10,000 (or its equivalent in other currencies) when entering or leaving Poland.

11. How has inflation affected the Polish Złoty in recent years?

Like many countries, Poland has experienced inflation in recent years. The National Bank of Poland is actively working to manage inflation and maintain price stability. You can find information on current inflation rates and monetary policy on the National Bank of Poland’s website.

12. What is the future outlook for the Polish Złoty?

The future outlook for the złoty is subject to various economic and political factors, including Poland’s economic performance, monetary policy decisions, and the broader global economic environment. The ongoing debate surrounding euro adoption also plays a role in shaping the złoty’s future. Experts offer varying perspectives on the long-term prospects for the złoty.