If you’re planning a trip to Poland, you’ll need to familiarize yourself with the country’s main currency, the Polish złoty. The złoty has been the official currency of Poland since 1924, and it’s used by over 38 million people in the country. The złoty is abbreviated as PLN and is subdivided into 100 groszy.
The złoty is the most traded currency in Central and Eastern Europe and ranks 21st most-traded in the world. While many places in Poland accept credit cards, it’s always a good idea to have some złoty on hand for smaller purchases or transactions.
The history of the złoty dates back to the Middle Ages when it was a silver coin used in Poland and other countries in the region. Today, the złoty is made up of coins and banknotes, with denominations ranging from 1 grosz to 500 złoty. Whether you’re exchanging money before your trip or withdrawing cash from an ATM in Poland, it’s important to understand the value of the złoty and how it works in the country’s economy.
Historical Journey of Polish Złoty
The history of Polish currency dates back to the Middle Ages when the Kingdom of Poland used various coins such as pennies, ducats, and florins. The first Polish zloty coins were introduced in the second half of the 17th century. The name “zloty” means “golden” in Polish and was used to describe a gold coin that was worth 30 groszy. The Polish monetary system was complex and intricate until a monetary reform was done in the 18th century, which removed all other monetary units except the zloty divided into 30 groszy.
During World War I, the zloty lost its value due to inflation. After the war, Poland introduced a new currency called the Polish mark, which was later replaced by the second zloty in 1924. The second zloty was pegged to the US dollar until 1939 when Poland was invaded by Germany. During World War II, the zloty lost its value again due to hyperinflation. After the war, Poland introduced the third zloty in 1950, which was pegged to the Soviet ruble until 1990.
History of Coins
The history of the Polish currency, the złoty, is a fascinating journey through centuries of economic evolution and transformative reforms. The journey began with the denarius in the 10th century, a tangible form of currency circulating through Poland. During this era, Polish coinage was predominantly silver-based, with the denarius minted from bullion, also including copper and other precious metals. The grzywna, not the pound, served as the standard unit of mass, with one grzywna equivalent to 240 denars. The Prague groschen held sway from the 1300s to the mid-16th century, overshadowing the need for a national currency in Central Europe.
In the 14th and 15th centuries, the term “złoty,” meaning “the golden one,” initially referred to various foreign gold coins. The Sejm parliament, in 1496, debated and approved the creation of a domestic currency – the złoty. An exchange rate of 30 grosz for one gold piece was established, maintaining this traditional subdivision until the 19th century. In the years 1526–1535, King Sigismund I, as part of a monetary reform proposed by Nicolaus Copernicus and Justus Decius, defined the złoty as a legal tender in a 1528 minting ordinance.
The monetary landscape remained intricate until Stanisław II Augustus implemented a reform in the 16th to 18th centuries, removing all other monetary units except the złoty divided into 30 groszy. Poland’s currency became linked to the Holy Roman Empire, setting exchange rates and standards.
Radical changes occurred during the Kościuszko Uprising, responding to economic collapse and territorial loss. Tadeusz Kościuszko introduced paper money as an alternative to coinage in 1794. The złoty persisted through the Partitions of Poland, Napoleon’s Duchy of Warsaw, and subsequent geopolitical shifts.
The Second Złoty, introduced in 1924, faced economic challenges, stabilizing after initial inflation. It was pegged to the US dollar and later reintroduced to the gold standard. World War II brought occupation, with the Germans establishing an Emissary Bank in Kraków. Post-war, the Third Złoty was introduced in 1950, denominated and linked to gold.
The fall of communism in 1989 led to hyperinflation in 1990, requiring the Fourth Złoty in 1995. The currency underwent redenomination, with redesigned coins and banknotes featuring Polish monarchs.
Looking ahead, Poland’s accession to the European Union in 2004 includes an obligation to adopt the euro eventually. Discussions on joining the Eurozone continue, though constitutional amendments are required. Recent polls indicate around 60% support for adopting the Euro, reflecting a dynamic future for the złoty within the European economic landscape.
History of Bills
Poland’s banknotes, ranging from 12 to 15 centimeters in length and 60 to 75 millimeters in width, showcase a unique design and historical chronology. The obverse features the left profile of Polish monarchs in armor or royal regalia, arranged chronologically based on their reigns. The reverse displays significant landmarks, early coinage, or historical objects, adorned with architectural elements like portals, columns, windows, or floral motifs. Predominant colors include brown, pink, purple, blue, green, and gold.
The face value is numerically indicated in the upper corners of the obverse and reverse, with the written form embedded vertically and horizontally, respectively. Each note boasts the shieldless coat of arms of the Republic of Poland and bears signatures of the President and General Treasurer of the National Bank of Poland (NBP).
The series, introduced in 1994, includes denominations of 10, 20, 50, 100, and 200 złoty, each featuring monarchs like Mieszko I, Boleslaus I the Brave, Casimir III the Great, Władysław II Jagiełło (Jogaila), and Sigismund I the Old, respectively. Additionally, a 500 złoty note was introduced in 2016, featuring John III Sobieski. The dimensions of each note increase with higher denominations, reflecting a thoughtful design approach. These banknotes, with their historical depictions and architectural elements, contribute to Poland’s rich cultural narrative and provide a visually engaging representation of its heritage.
Inflation and Buying Power of the Polish Złoty
In Poland, the inflation rate is currently 5.3%, which means that the cost of living is rising at a faster rate than in many other countries. This can have an impact on the buying power of the Polish currency, as it may become more expensive to purchase goods and services.
However, it is worth noting that the Polish government has taken steps to combat inflation, such as increasing interest rates and implementing policies to support small businesses. These measures may help to stabilize the economy and prevent inflation from spiraling out of control.
The exchange rate of the Polish currency, the zloty, is another important economic indicator. The exchange rate determines how much one currency is worth in relation to another currency.
The exchange rate can have a significant impact on the economy, as it affects the cost of imports and exports. A weaker zloty can make it more expensive to import goods from other countries, while a stronger zloty can make it more expensive to export goods to other countries. As such, the exchange rate is closely monitored by economists and policymakers to ensure that it remains stable.
Overall, the Polish Zloty is a stable currency with a relatively low inflation rate. It is widely accepted throughout Poland, and you can exchange foreign currencies at banks, exchange offices, and some hotels. When traveling or doing business in Poland, it is always a good idea to have some Polish Zloty on hand for small purchases and tips.
The Polish Złoty
The Polish zloty (PLN) is the official currency of Poland, introduced in 1924 but with origins dating back to 1919. The Narodowy Bank Polski (National Bank of Poland) is the central bank responsible for issuing and regulating the zloty. Banknotes are available in denominations of zł10, zł20, zł50, zł100, zł200, and zł500, while coins come in values of zł1, zł2, and zł5, with 100 groszy making up one zloty.
The zloty operates with a free-floating exchange rate in the foreign exchange markets, meaning it is not tied to any specific currency. Common pairings for the zloty include the U.S. dollar (USD), euro, Swiss franc (CHF), British pound (GBP), and Australian dollar (AUD). Over the years, the PLN exchange rate has fluctuated, ranging from two PLN to one U.S. dollar to over 4.5 PLN to one U.S. dollar. Since the Great Recession in 2008, it has typically ranged between three to four PLN to the dollar. As of June 4, 2023, the exchange rate stands at approximately zł4.19 for one U.S. dollar.
zł10
The 10 Polish Złotych note, the lowest denomination in the złoty currency, has been in circulation since the currency’s redenomination in 1995. The 10 złoty note, measuring 120×60 mm, is predominantly brown and features a portrait of Duke Mieszko I on the obverse, along with a denarius coin and Romanesque columns from the Tyniec Abbey on the reverse.
zł20
The 20 złoty note, sized 126×63 mm, has pink and purple hues, showcasing Boleslaus I the Brave on the obverse and a denarius coin, along with the Rotunda of Saint Nicolas and a fragment of Gniezno Doors on the reverse.
zł50
The 50 złoty note, 132×66 mm in size and blue in color displays Casimir III the Great on the obverse, and the reverse features the Polish white eagle with royal regalia, Kraków, and Kazimierz by Hartmann Schedel.
zł100
The 100 złoty note, measuring 138×69 mm and in green tones, presents Władysław II Jagiełło (Jogaila) on the obverse, with the reverse showcasing the Polish white eagle with Grunwald swords and Teutonic armor, along with Malbork Castle.
zł200
The 200 złoty note, sized 144×72 mm and in gold and yellow, features Sigismund I the Old on the obverse and the Polish white eagle from the Sigismund’s Chapel, Wawel Castle, on the reverse.
zł500
The 500 złoty note, measuring 150×75 mm and combining light blue, pink, gold, and brown, highlights John III Sobieski on the obverse and the Polish white eagle, along with Wilanów Palace, on the reverse. These banknotes were introduced in 1994 and entered circulation on January 1, 1995, except for the 500 złoty note, which was released on February 10, 2017.
Currency Usage in Poland
The official currency of Poland is the Polish złoty (symbol: zł), which is divided into 100 groszy (symbol: gr). Currently, there are nine denominations of coins in circulation (1 gr, 2 gr, 5 gr, 10 gr, 20 gr, 50 gr, 1 zł, 2 zł, 5 zł) and six denominations of banknotes (10 zł, 20 zł, 50 zł, 100 zł, 200 zł, and 500 zł) 1. The złoty is widely accepted throughout the country, and it is the only legal tender in Poland.
Is USD Accepted in Poland?
The US dollar (USD) is not widely accepted in Poland, and it is not a legal tender. Therefore, you might face difficulties in using USD for transactions in Poland. However, some banks and exchange offices in major cities might accept USD, but the exchange rate might not be favorable. It is advisable to use złoty for transactions in Poland.
Can You Use Euro in Poland?
Although Poland is a member of the European Union (EU), it has not yet adopted the euro as its official currency. Therefore, you cannot use the euro as a means of payment in Poland. However, some hotels, restaurants, and shops in major tourist areas may accept the euro, but the exchange rate might not be favorable. It is advisable to use złoty to avoid any confusion or extra charges.
Exchanging Currency in Poland
If you are traveling to Poland, you will need to exchange your currency for the Polish zloty (PLN). Here are some things you should know about exchanging currency in Poland.
You can exchange currency at banks, exchange offices, and some hotels in Poland. Banks usually offer the best exchange rates, but they may charge a commission. Exchange offices may have higher exchange rates and additional fees, so it’s important to compare rates before exchanging your currency.
Where can I Exchange Polish Złoty Currency?
You can exchange Polish currency at banks, exchange offices, and some hotels in Poland. Banks usually offer the best exchange rates, but they may charge a commission. Exchange offices may have higher exchange rates and additional fees, so it’s important to compare rates before exchanging your currency.
What to know before exchanging currency in Poland
Before exchanging your currency in Poland, here are some things you should know:
- Always compare exchange rates to get the best deal.
- Be aware of scams and fraudulent exchange offices. Always exchange money at reputable places.
- Avoid exchanging currency at airports or train stations as they may have higher fees and lower exchange rates.
- Exchange only the amount of money you need and keep your receipts in case you need to exchange any unused currency back to your original currency.
- Check with your bank or credit card company to see if they charge any foreign transaction fees or offer any travel rewards.
Choosing Between USD and Polish Złoty
When you are traveling to Poland, it is advisable to carry Polish złoty to avoid any inconvenience. You can exchange your currency at exchange offices, banks, or ATMs, which are widely available throughout the country. You can also use credit cards, which are widely accepted in Poland, but it is advisable to carry some cash for small transactions.
The Polish złoty is the only legal tender in Poland, and it is widely accepted throughout the country. You cannot use the euro or USD as a means of payment in Poland, but some businesses in major tourist areas might accept them. It is advisable to carry Polish złoty for transactions in Poland, and you can exchange your currency at exchange offices, banks, or ATMs.
When traveling to Poland, it is important to have a basic understanding of the country’s currency and financial system. Here are some financial tips to help you make the most of your trip.
When traveling to Poland, you may be wondering whether to use US dollars or Polish Zloty. Here are some factors to consider when choosing between the two currencies:
Exchange Rate
The exchange rate can have a significant impact on the economy, as it affects the cost of imports and exports. A weaker zloty can make it more expensive to import goods from other countries, while a stronger zloty can make it more expensive to export goods to other countries. As such, the exchange rate is closely monitored by economists and policymakers to ensure that it remains stable.
Overall, the economic indicators of inflation and the exchange rate can provide valuable insights into the health of the Polish economy. By keeping an eye on these indicators, you can gain a better understanding of the current state of the economy and make informed decisions about your finances.
The exchange rate between the USD and the Polish Zloty fluctuates daily. It’s important to check the exchange rate before exchanging currency to ensure you are getting a fair rate. You can use online currency converters like Xe or Wise to get an idea of the current exchange rate.
Convenience
The official currency of Poland is the Polish zloty (PLN). While some larger hotels and tourist areas may accept major foreign currencies such as US dollars or euros, it is best to exchange your money for zloty at a bank or exchange office. ATMs are widely available throughout the country, and many accept foreign debit and credit cards. However, it is always a good idea to carry some cash with you in case of emergencies.
While some businesses in Poland may accept USD, it’s generally more convenient to have Polish Zloty on hand. Many small businesses, such as local markets or street vendors, may not accept USD at all. Additionally, if you pay with USD, you may receive a change in Polish Zloty, which can be confusing if you are not familiar with the currency.
Fees
When exchanging money or using ATMs, be aware of any fees that may be charged. Some banks and exchange offices may charge a commission or have unfavorable exchange rates. Additionally, your home bank may charge fees for international transactions. To avoid unnecessary fees, shop around for the best exchange rates and consider using a credit card with no foreign transaction fees.
When exchanging currency, be aware of any fees associated with the transaction. Some exchange bureaus may charge a commission or a flat fee for exchanging currency. Additionally, your bank may charge a foreign transaction fee for using your debit or credit card in Poland. It’s important to research these fees and factor them into your budget when traveling.
Tips
It is recommended to have some Polish Zloty on hand when traveling to Poland. While some businesses may accept USD, it’s generally more convenient to have the local currency and be aware of any fees associated with exchanging currency.
Cost of Living in Poland
Poland is an affordable country to live in, especially when compared to other European countries. The cost of living in Poland is relatively low, with the prices of goods and services being significantly lower than in other European countries. According to Expatistan, the cost of living in Poland is 49% lower than in the United States. The prices of food, transportation, and accommodation are all relatively low, making it possible to live comfortably in Poland on a modest budget.
Poland is not an expensive country to live in. While the cost of living in Poland is not as low as in some Asian or African countries, it is still relatively low when compared to other European countries. The prices of goods and services in Poland are generally lower than in other European countries such as Germany, France, or the United Kingdom. However, the prices in Poland can vary depending on the location. Warsaw, the capital of Poland, is generally more expensive than other cities in Poland.
Poland is a great place to live, especially for those who value a high quality of life at an affordable cost. The country has a rich history and culture, with many beautiful cities, towns, and natural landscapes to explore. The people are friendly and welcoming, and the country is generally safe and secure. The infrastructure in Poland is also well-developed, with excellent public transportation, modern healthcare facilities, and a reliable internet connection. Additionally, Poland is a member of the European Union, which makes it easy for residents to travel and work in other EU countries.
Don’t Get Scammed Tips
When traveling to Poland, it’s important to be aware of common scams that may occur when exchanging currency. Here are some tips to help you avoid being scammed:
- Use reputable exchange offices – Look for exchange offices that are located in busy areas and have a good reputation. Avoid exchanging currency on the street or in small, unknown exchange offices. You can also check online reviews and ratings before choosing an exchange office.
- Check the exchange rate – Before exchanging currency, check the current exchange rate to ensure that you are getting a fair deal. You can use online currency converters or ask for the exchange rate at the exchange office.
- Count your money – Always count your money before leaving the exchange office. Make sure that you have received the correct amount and that the bills are not counterfeit.
- Avoid being distracted – Be wary of people who try to distract you while exchanging money. They may try to steal your money or switch it with counterfeit bills.
- Use ATMs – Using ATMs is a safe and convenient way to withdraw money. However, be aware of skimming devices that may be attached to the ATM. Always cover the keypad when entering your PIN and report any suspicious activity to the bank.
By following these tips, you can avoid being scammed when exchanging currency in Poland. Remember to always be vigilant and cautious when handling money.
