Zloty Gains Second Day as Cyprus Reaches Agreement on Bailout
Poland’s currency strengthened for a second day after Cyprus and its creditors agreed on the terms of a bailout of the Mediterranean island, helping dodge the threat of contagion in the euro area.
The zloty advanced 0.4 percent to 4.1563 per euro by 10:47 a.m. in Warsaw, after retreating 0.7 percent last week.
Cypriot President Nicos Anastasiades agreed to shut the country’s second-largest bank Cyprus Popular Bank Pcl and impose a tax on bank deposits that spares accounts below the insured limit of 100,000 euro, paving the way for 10 billion euros ($13 billion) in emergency loans to stave off the threat of default. The euro region is the consumer of more than half of Poland’s exports.
The yield on Poland’s 10-year government bonds rose eight basis points, or 0.08 percentage point, to 3.92 percent after slumping 12 basis points on March 22.
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