What Is PLN?
PLN is the currency abbreviation or currency symbol for the Polish zloty, the official currency of Poland. The zloty is issued and managed by The National Bank of Poland.
The PLN Explained
The Polish zloty dates back to 1919 but was not circulated until 1924. The Polish zloty comes in denominations of banknotes that include banknotes of 10, 20, 50, 100, and 200 zloty as well as coins.
As Poland transitioned away from the Communist party with the collapse of the Soviet Union and into a free-market economy, inflation soared. As a result, for a brief time in the 1990s, there were denominations of 500,000 and 1 million zloty. Once inflation subsided, the larger denominated notes were no longer needed and were converted into smaller denominations.
The zloty is not pegged to the U.S. dollar, meaning it's a free-floating currency with its own exchange rate.
Real World Example of PLN
Since the early 2,000s, the PLN exchange rate has typically traded between two PLN to one U.S. dollar to over 4.5 PLN to one U.S. dollar. However, it has not traded at two PLN since the Great Recession in 2008 and for the past several years, has ranged approximately between three PLN to four PLN to the dollar.
For example, if you were converting 1,000 U.S. dollars to PLN at an exchange rate of 3.5, you would receive 3,500 Polish zloty.