Poland: New Square-Shaped Silver Coin Marks 100th Anniversary of the Introduction of the Zloty

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The Polish National Bank have released new silver square-shaped proof coins marking the centenary anniversary of the introduction of the Zloty.

After Poland regained independence in November 1918, the decision was taken swiftly to replace the Polish Mark with a new bank of issue and introduce a new Polish currency, the złoty. However, since the very start of its existence, the re-born Polish state had to fight rising inflation, which mutated into hyperinflation in the second half of 1923. In December that year, the Władysław Grabski government was formed and the cabinet faced the primary task of carrying out fiscal and currency reform. Poland's parliament granted the government special powers to decrease expenditure, impose levies on real estate, adjust taxation, implement policies to lessen inflation and reform the banking system. Thanks to this recovery programme, it was now possible to stabilise the exchange rate of the Polish mark in preparation to introduce the zloty. With an increase in US dollar reserves, along with the country's gold bullion reserve, these two primary assets were put in place to back the new currency.

The złoty subdivided into 100 grosz was first introduced into circulation in April 1924 and its value was carefully calculated. The new Polish currency was based on the parity of gold and convertible currencies. One złoty was equal to 0.31 grams of pure gold and 100 złoty was equal in value to 1 troy ounce. Thus, the exchange price of 1 kilogram of gold amounted to 3,444 złoty. One US dollar equalled 5.18 złoty, and the value of the Polish currency was pegged to that of the Swiss franc - an often used reserve currency before the Second World War. According to the reform arrangements, at least 30% of the issue of the new Polish currency had to be backed by gold stocks and foreign currencies. At the same time, the decision was made to withdraw the Polish mark as a means of payment. The exchange rate was set at 1,800,000 Polish marks for 1 złoty. The issue of the złoty was within the remit of Bank Polski Spółka Akcyjna - a joint-stock company, the newly established bank of issue which replaced the Polish Loan Bank - Polska Krajowa Kasa Pożyczkowa, the institution established by the German occupant during World War I. The reform proved to be an outstanding success, as it not only led to the consolidation of public finances, but also provided an impetus and stability for the country's economic development. The reform also resulted in a significant strengthening of Poland's position on the international arena.

With the founding of the Central Bank of Poland in 1945, the zloty remained in continued use during and after the Second World War. The currency remained in use during the Polish People's Republic from 1947 to 1989 and after the restoration of democracy. During a period of hyperinflation, a recalibration of the Zloty in 1995 resulted in a new exchange rate of 10,000 old equalling one new złoty, and which remains the present currency in use today.

The silver proof coins are produced by the Mint of Poland at their facilities in Warsaw on behalf of the National Bank and designed by Urszula Walerzak. The obverse side features a recreation of the obverse of the original 1924 coin design of the silver 1 złoty coins released that year. Formatted as a diamond shape, the commemorative text above the 1924 design reads 100. ROCZNICA WPROWADZENIA (100th Anniversary of Putting the Złoty into Circulation)with the additional text ZŁOTEGO DO OBIEGU placed below. Also featured are fragments of a portal above the entrance to the main hall of the former Bank Polski SA in Warsaw. Two allegorical figures representing knowledge and industry are placed on either side of the 1924 zloty design. The reference for this design element is borrowed from the 100 złoty banknote issued in 1934. The reverse side features the image of the reverse of the same 1924 coin featured on the obverse. The denomination 1 ZŁOTY is placed above the coin and the additional text RZECZPOSPOLITA POLSKA 2024 is shown below. Poland's national symbol, the crowned Eagle is placed just under the lower text. The depiction of the 1924 coin is selectively plated in gold on both the obverse and reverse.

Available from the 25th April, each silver proof quality coin is encapsulated and presented in a heavy-gauge lined card case, accompanied with a certificate of authenticity. For additional information, please visit the retail webpage of National Bank of Poland.

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Author: Michael Alexander

Michael's background in both numismatics and banknotes spans more than three decades and whose activities have varied from being a dedicated world coin collector to coin & medal design, marketing, theme concept and production. His additional interests include banknote research and in 1997, he founded the London Banknote and Monetary Research Centre to further these interests and activities. The company continues to offer monthly currency bulletins to both online and printed publications which includes information about the latest banknote news and releases from Central Banks and Monetary Authorities around the world. Michael has been a contributor to COIN NEWS magazine based in the UK since 1998 where many of his in-depth interviews, articles and bulletins have been published.

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