•5 years
"Is it better to keep money in Polish złoty or euros?"
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The question lacks information whether it refers to saving money, but I assume so. In my opinion, it is best to divide the funds between several currencies, including our national one. This way, we will secure ourselves against various scenarios. The Polish złoty is accepted everywhere in Poland and allows for instant conversion into other assets, products, or services. On the other hand, foreign currencies will provide security in the event of a significant weakening of our currency or the need for a quick trip to another country. They can also be traded, taking advantage of temporary growth or declines, and conducting these operations is not burdened by any tax. Currency speculators often take advantage of this opportunity. Euro has been a relatively stable currency so far, but on the other hand, the złoty is strongly correlated with it anyway because we are part of the EU. This means that in case of trouble in the Eurozone or the entire European Union, we can double our losses. Euro depreciates against the dollar, and the złoty loses value both against the euro and the dollar. Therefore, the safest choice is to have both euros and dollars, and ideally also Swiss francs, yuan, or yen. This will allow us to switch to the strongest currency at any given moment because we very rarely deal with a crisis or an event so powerful that the entire world feels it equally. Moreover, even if such a moment occurs (as was the case with the pandemic), financial markets keenly observe which player rises first, and automatically, their national currency gains an advantage over others. That is why I believe that diversification in financial matters works in every case.
The question lacks information whether it refers to saving money, but I assume so. In my opinion, it is best to divide the funds between several currencies, including our national one. This way, we will secure ourselves against various scenarios. The Polish złoty is accepted everywhere in Poland and allows for instant conversion into other assets, products, or services. On the other hand, foreign currencies will provide security in the event of a significant weakening of our currency or the need for a quick trip to another country. They can also be traded, taking advantage of temporary growth or declines, and conducting these operations is not burdened by any tax. Currency speculators often take advantage of this opportunity. Euro has been a relatively stable currency so far, but on the other hand, the złoty is strongly correlated with it anyway because we are part of the EU. This means that in case of trouble in the Eurozone or the entire European Union, we can double our losses. Euro depreciates against the dollar, and the złoty loses value both against the euro and the dollar. Therefore, the safest choice is to have both euros and dollars, and ideally also Swiss francs, yuan, or yen. This will allow us to switch to the strongest currency at any given moment because we very rarely deal with a crisis or an event so powerful that the entire world feels it equally. Moreover, even if such a moment occurs (as was the case with the pandemic), financial markets keenly observe which player rises first, and automatically, their national currency gains an advantage over others. That is why I believe that diversification in financial matters works in every case.
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O
It mainly depends on the financial situation and investment goals. Keeping money in Polish złoty may be beneficial for people in Poland, as changes in the exchange rate can affect the value of their assets. On the other hand, holding euros may be advantageous for people who travel frequently to Eurozone countries or for those who invest in European markets. It is worth seeking advice from a financial expert before making a decision.
It mainly depends on the financial situation and investment goals. Keeping money in Polish złoty may be beneficial for people in Poland, as changes in the exchange rate can affect the value of their assets. On the other hand, holding euros may be advantageous for people who travel frequently to Eurozone countries or for those who invest in European markets. It is worth seeking advice from a financial expert before making a decision.
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