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Mass in grams, diameter in mm. The banknotes had to be accounted on the deposits of the people who gave them to the bank.
It was massively counterfeited. It started working on 8 April In May , old banknotes of — were overstamped by the new entity.
Money exchange was limited per individual; the limits varied according to the status of the person. A new issue of notes appeared in — The General Government also issued coins 1, 5, 10 and 20 grosz in zinc, 50 grosz in nickel-plated iron or iron , using similar designs to earlier types but with cheaper metals mainly zinc - copper alloy.
An additional 20 million were manufactured by the conspiratory typography of the Union of Armed Struggle. The first monetary reform of post-war Poland was conducted in , when the initial series of banknotes of socialist Poland was released.
This was essential for the recreation of the country, so the Polish Committee of National Liberation signed an act on 24 August introducing the banknotes.
The older General Government banknotes were exchanged at par with the new ones. The rest came onto the blocked bank accounts.
The banknotes had a very simple design, with no people or buildings featured. Printing was completed at the Goznak mint in Moscow.
On 15 January the National Bank of Poland was finally created. The first Communist series' banknotes were easy to counterfeit, so additional replacement banknotes were printed in — The IV series banknotes had a longer life.
Older banknotes had to be exchanged within 8 days for the new series IV, which had been designed, printed and distributed in great secrecy.
The new banknotes were dated in , while the new coins were dated in As in all the Warsaw Bloc countries, Poland started nationalizing major industrial and manufacturing businesses.
The necessary legislative act was signed in However, smaller enterprises remained in private hands, in contrast to the USSR. Despite this concession, the whole economy was under firm state control.
In the agricultural sector, farmers still the major source of Polish income received additional lands from the government. These properties were the result of confiscations from the church, wealthy families as well from farmers who were targeted as counter revolutionaries to Soviet Communist rule.
In the late s, Polish currency became unstable. This was largely due to initial opposition to the new Soviet imposed government and made an already difficult economic situation worse.
Beginning in , the Soviet controlled government started implementing communist collectivization policy on a mass scale. Others supplied produce to the State for distribution and had to comply with obligatory centralized food deliveries first of cereals, in ; and from on, of meat, potatoes and milk.
Unable to compete with advantaged collective farms, privately owned and individually-run farms went bankrupt. The State bought at extremely low prices designed to impoverish private farms.
State Farms were reformed, enforced obligatory deliveries were reduced and State buying prices were raised. On the whole the structure was little different from that of industry was state-owned, while agricultural production was State directed but mostly in private hands.
Serious reforms were proposed in the early s by Edward Gierek , which aimed to improve the situation for ordinary citizens. Unfortunately, the government had inadequate funds to initiate these reforms.
This explains Poland's growing financial indebtedness to the USSR and other Warsaw Bloc countries, promoting the view that "the investments will upgrade the Poland's potential, which will be aimed at export, so that the country will pay the interest and at the same time maintain a high industrial production".
In fact, although the intention was to create employment, it never happened. Poland's debt burden grew too large, forming the main cause of further financial crisis.
After a period of prosperity in —, Poland entered into a very deep recession, which worsened over time as Poland was unable to meet debt interest obligations.
The crisis was to last until The first indications of the crisis was obvious by the mids, when there began a period of rampant inflation.
In Gierek's government was accused of corruption. He was removed from power in These restricted industrial production which by then had become the main economic sector.
The Communist government's inability to organize production to balance supply and demand resulted in shortages as well as wasteful surpluses.
Debt and currency issuance was used to attempt to smooth over the swings and caused inflation and wild moves in interest rates and borrowing conditions.
These chaotic market conditions caused by reactionary policies of Communist controls and mandates led to widespead food shortages and government imposed food rationing.
Poor economic productivity and a huge public debt burden did not create any salary and pension increases.
By it was admitted that the situation was beyond management. In an effort to escape such situation, Poland started massively printing banknotes, without backing from increased economic output.
Thus, deliberately attempting hyper inflation throughout the 80s to resolve the economic stagnation.
Grosz coins were rendered worthless and coins were mostly made out of aluminum with the exception of the commemorative ones.
The public debt burden doubled over the course of the 80s. Given the circumstances, the only solution appeared to be the liberalization of the economy.
These were not, however, the Soviet Perestroika cooperatives, but ones with limited experience in the market economy.
These were ready to transfer to a market economy. The Communist authorities had to admit they had failed to manage the economy productively, which was another reason to introduce changes.
Leszek Balcerowicz was behind the idea of shifting the economic basis from state-based to free-trade. To achieve this, the following were introduced:.
The first two denominations were minted only in , the rest also later. Coins minted in featured the former name. The 5 grosz brass coin was withdrawn in The rest circulated until All the PRP and issued coins were withdrawn in , as a result of the monetary reform conducted at that time.
The banknotes issued in were already stable version. They were taken out of circulation in completely. From the new banknotes featuring "Great Polish people", and comprising the fifth series, were issued.
Previous series were withdrawn from circulation. However, the replacement banknotes rapidly lost their real value. New larger denominations were necessary and printed.
Starting on 27 December new banknotes were issued in the name of "Rzeczpospolita Polska", i. All the existing PLZ denominations were legal tender and exchangeable into the PLN until the date of each value's withdrawal.
From 50, PLZ on, there were two versions released: older ones dated differently and the newer ones all dated 16 November The older banknotes had less efficient security features than the new ones.
Newer printings had the denomination printed in red which shone under ultraviolet light instead of the previous grey-blue which did not.
The exchange rate did not depend on the amount being converted. Visitors from countries outside of the Soviet Bloc were offered a particularly poor exchange rate.
Concurrently, the private black-market exchange rate contrasted sharply with the official government exchange rate until the end of communist rule in , when official rates were tied to market rates.
There were special banknotes, denominated in cents and dollars as the US dollar , which were legal tender only for goods imported to Poland.
They were issued by two authorities only: Pekao S. At the same time PLN coins were minted bearing dates — and released into circulation in This influenced the further process of money exchange in , as exchanging low-value banknotes became considerably easier.
The banknotes posed a bigger problem. The designs featured buildings and structures from Greater Poland cities and proofs produced.
Balcerowicz plan helped very much to achieve that in four years' time. The act allowing the project to come into force was ratified on 7 July Dziennik Ustaw Nr 84, At the same time, new banknotes were printed dated 25 March , which are still legal tender today.
These feature the most prominent Polish monarchs. Their author is Andrzej Heidrich. These designs were revealed to the public on 21 November The following day TVP , Polish television , began publicising the designs on TV in a campaign that lasted until 1 January when the redenomination took place.
Unlike previous redenominations, there were no restrictions on where the money was or who owned it. The priority was to take the low-denomination PLZ to convert them to coinage.
After 31 December , PLZ was no longer legal tender. The sum for exchange had to be the multiple of PLZ, which were worth 0.
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