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The strengthening of the Polish zloty following an October election negatively affected central bank's financial results by 31 billion zlotys ($7.75 billion), it said on Wednesday, rejecting claims it misled the government about its profits.
The statement from the National Bank of Poland (NBP) comes amid uncertainty over the future of Governor Adam Glapinski, after media reports that the government could use the issue of the central bank's results to oust him.
The NBP had told the finance ministry in August that it would contribute around 6 billion zlotys to the state budget from its profits, but this will now not be possible as it will report a loss.
"This estimate changed dramatically, mainly due to the very rapid increase in the exchange rate of the Polish zloty against the main currencies," the NBP said in a statement, adding that the war in the Middle East also had a big impact.
"The increase in the PLN (zloty) exchange rate alone reduced the financial result at the end of the year by approximately PLN 31 billion!"
Bloomberg reported on Saturday, citing sources, that Prime Minister Donald Tusk had given the green light to put Glapinski in front of a tribunal that could eventually remove him from his post.
Tusk vowed before the election to put Glapinski before a state tribunal.
However, Poland's Constitutional Tribunal ruled in January that the government would need a three-fifths majority in parliament to do so, complicating its task. Tusk has said there could be other ways of removing him. (Reporting by Alan Charlish; Editing by Nick Macfie)