Skip to content
Subscriber Only

Brexit Jolts EU’s Eastern Members as Polish Zloty Leads Plunge

  • Poland receives biggest contribution of EU financial support
  • Zloty falls most in emerging Europe, stocks drop across region
Video player cover image

Brexit: Winners and Losers

Updated on

Poland led declines in emerging Europe, with the zloty weakening the most in five months, as the U.K. vote to quit the European Union threatened to throttle aid to the bloc’s less-affluent eastern member states and curtail trade with Britain.

The zloty, seen as a proxy for emerging-market risk to the so-called Brexit, slid as much as 3.8 percent against the euro before trimming losses as the victory for the U.K. leave vote pounded stocks in Warsaw, Prague and Budapest and sent Polish bond yields climbing the most since January. The cost to insure Poland’s debt against default rose to highest in more than three months. Central banks from Romania to Hungary moved to calm markets.