Poland: Coins Issued and Used

In 1950, a new złoty currency (PLZ) was introduced, replacing all notes issued up to 1948 at a rate of one hundred to one, while all bank assets were re-denominated with the ratio 100:3. The new banknotes were dated 1948, while the new coins 1949. Initially, by law with effect from 1950 1 złoty (zł) was made equal to 0.222168g of pure gold.

After communism and financial turmoil, inflation peaked in 1990 (characterised as hyperinflation, as the monthly rate was higher than 50%). However, by December 1991 it decreased below 60% per annum, and by 1993 it firmly established below 40%, which was an acceptable inflation rate for the economy. As a result, the złoty regained the confidence of foreign investors. The remaining issue was the re-denomination of the depreciated złoty. It took place on 1 January 1995, when the Third Złoty (PLN) was released; 10,000 PLZ became 1 PLN. The two currencies co-existed for two years.

The złoty was reintroduced as Poland's currency by Grabski in 1924, following the hyperinflation and monetary chaos of the years following World War I. It replaced the marka at a rate of 1 złoty = 1,800,000 marek and was subdivided into 100 groszy, instead of 30 groszy, as it had been in Medieval times and in Russian Poland. 1 złoty was worth 0.2903 grams of gold, and 1 US dollar cost 5.18 złotych. New coins had to be introduced, but were not immediately minted or in circulation. The temporary solution of the problem was ingenious. 500,000 marek banknote were cut in two, and on each side there were overstamps that showed they were 1 grosz "coins". Similarly 10,000,000 marek notes were divided and overprinted to make two "coins" each worth 5 groszy. This was an emergency measure to provide the population with a form of the new currency.

When the second złoty was created, it was pegged to the US dollar. With various changes, it lasted until the post-War Communist government changed to the Third Złoty. In 1950, a new złoty currency (PLZ) was introduced, replacing all notes issued up to 1948 at a rate of one hundred to one, while all bank assets were re-denominated with the ratio 100:3. The new banknotes were dated 1948, while the new coins 1949. Initially, by law with effect from 1950 1 złoty (zł) was made equal to 0.222168g of pure gold.