Abolition Of The Currency Principle

The President has signed a new law abolishing the principle that monetary obligations in Poland must be carried out in Polish zlotys.

The legislation will come into force 30 days after the date of its publication.

The changes will:

• enable Polish entities to specify amounts to be paid and effect payment in a foreign currency
• entitle the debtor to make payments in Polish zlotys even if the amount of the receivables is expressed in foreign currency, unless otherwise required (by contractual stipulation, statutory regulation or binding court decision) to make payment in that foreign currency
• require the value of foreign currency (in the absence of any contractual or other binding obligation to the contrary) to be calculated at the average foreign exchange rate announced by the National Bank of Poland prevailing on the date payment becomes due and payable