Polish Złoty

Polish Złoty

How fast do Polish banknotes deteriorate?

The shelf life of banknotes depends on the denomination. The PLN 200 banknote lasts for about 12 years at the longest, while the PLN 100 banknote is destroyed in about 5 years. The denominations of PLN 10 and PLN 20 turn out to be the weakest banknotes and their durability is about 1.5 years. It is also worth mentioning that used or damaged banknotes can be exchanged for new ones at any bank in the country. A prerequisite for the banknote to be exchanged for a new one is a minimum of 45% of the banknote’s surface in one piece, so that the denomination can be easily recognized. However, if the banknote is more than 75% damaged, it can also be exchanged, but only for half the face value.

The history of the name of the Polish currency

In April 1924, an ordinance was issued to change the Polish monetary system. The Polish Mark was then replaced with a new currency that needed a new name. Currently, Poles cannot imagine that the native currency could have a different name, but various possibilities were considered when looking for a new name for the Polish currency. Piast, Lech , Kościuszko and Pol  – and these are just a few of the names proposed as the name of the Polish currency.

Two weeks after the ordinance issued by the then Polish president on changing the monetary system, Bank Polski SA was established. The share capital of this company was then worth one million PLN 100 shares, which were bought in 35% by the industry, 23% by state employees and representatives of liberal professions. Surprisingly, only 12% of the shares were purchased by banks. The value of the new monetary unit, replacing the Polish Mark, was equal to the value of the Swiss franc. Converting this value to pure gold, it was 9/31 grams of the bullion.

Denomination

In 1989, during the winds of change from Socialism to Capitalism, there was another hyperinflation in the history of Poland. At that time, Poland was struggling with a huge budget deficit and our country’s huge foreign debt. This situation forced drastic changes in the economy that were necessary – there was a transition from a planned economy (that is, managed centrally by the political bureau of the Central Committee) to a capitalist economy. A well-known economist, prof. Leszek Balcerowicz. His so important in history “Balcerowicz plan” assumed fundamental reforms that led to the curbing of inflation and clearly stabilized the country’s monetary policy.

The next step to obtain financial liquidity in Poland was denomination. Before, every Pole was a millionaire. It is enough to look at the fact that according to the then exchange rate of the Polish currency, 1 Zloty was then exchanged for as much as 10,000 old Zlotys. The denomination was a very serious undertaking, but nevertheless it went very smoothly.