The central bank attempted to contain the rate of the zloty's appreciation by intervening in the forex market within the band.
The administrative revaluation of the zloty was thought of as definitely less desirable - instead a market-based approach had been adopted.
Current account surplus suggested in a very plausible way that the zloty was undervalued.
That meant that the exchange rate band, however wide and with zloty rather far from its ends, could not be maintained in this system.
That influenced beneficially both the appreciation pressures on the zloty and foreign exchange reserves growth with the latter stabilizing at a comfortable level in mid-1996.
The fee might be paid in zlotys, but even in local currency it is still a lot of money.
Also, the exchange rate of the dollar against the zloty no longer supports the argument about illegal work.
We find that the duty on fresh herring imported by sea is reduced by half, from 2 zlotys to 1 zloty per 100 kilograms.
