20 Zlotys – Poland

In 1995, Poland was in a period of profound economic transition and stabilization following the shock therapy reforms of the early 1990s. Hyperinflation had been tamed, dropping from over 600% in 1990 to a more manageable but still high 28% in 1995. The official currency remained the old Polish złoty (PLZ), but it was a unit carrying the psychological burden of the recent inflationary past. While the economy was growing robustly, the currency was not yet fully convertible or widely trusted for savings, and dollarization—the use of US dollars and Deutsche marks for large transactions and as a store of value—remained a common practice.

A central event of the year was the preparation for a dramatic redenomination. On January 1, 1995, the National Bank of Poland began introducing a new currency, the new Polish złoty (PLN), at a rate of 10,000 old złotys (PLZ) to 1 new złoty (PLN). This was not a devaluation but a technical recalibration, aimed at simplifying accounting, restoring public confidence in the national currency, and symbolically closing the chapter on the high-inflation era. The two currencies circulated in parallel throughout the year, with the old notes and coins being gradually withdrawn.

The redenomination was successfully implemented as a purely administrative measure, backed by a relatively stable exchange rate policy managed within a crawling peg band against a basket of currencies. This stability, coupled with continued economic growth and increasing foreign investment, helped build credibility. By the end of 1995, the new złoty was firmly established, representing a crucial step in Poland's integration into the global economy and paving the way for future financial market development and, ultimately, European Union accession.