Poland Launches 500 Zloty Banknote

Going against a global trend of discouraging cash use, the European Union’s biggest eastern economy Poland launched a new 500-zloty ($123.6) banknote on Friday to reduce the cost of storing reserves and better reflect rising levels of affluence, Reuters reported. The central bank took the decision despite a request from a deputy economy minister to reconsider on grounds the new banknotes could facilitate criminal activity and make it more difficult to fight the grey economy. “It is clear that there is a need to supplement the structure of banknotes in circulation,” central bank board member Jacek Bartkiewicz told reporters. “The need for cash is rising.” Thanks to its robust economic growth and despite over two years of deflation that ended last year, Poland has seen a steep rise in cash used, with the value of currency in circulation rising by 15% last year alone. Bartkiewicz said the new banknote will be available to the general public, though he did not expect it to be widely used in day-to-day transactions.