Belka Sees Shock-Resistant Zloty as Fed Stokes Global Volatility
- Poland's zloty is one of least volatile emerging currencies
- Implied volatility predicts increase in zloty price swings
Poland’s central bank Governor Marek Belka is confident the zloty will extend its run as one of the most stable emerging-market currencies amid growing uncertainty from next month’s parliamentary election as well as external shocks.
The zloty’s three-month historic volatility fell to 6.3 percent on Wednesday, the lowest rate of fluctuation among 24 developing peers tracked by Bloomberg except for Bulgaria’s lev, the Czech koruna and Romania’s leu -- three currencies closely controlled by central banks. While implied volatility, or a gauge of expected price swings calculated through derivatives, signals a pick-up in the next three months to 7.3 percent, the zloty is set to remain more stable than all emerging currencies beside the leu and koruna.