WRAPUP 4-E.Europe policymakers scramble to halt currency slide

Wed Feb 18, 2009 5:44pm GMT
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* Poland exchanges EU fund to prop up zloty

* Poland says starts ERM-2 talks with ECB

* Hungary calls for "unconventional means" to protect forint

* Czech cbanker warns of potential rate hike

* Click on [ID:nLI73423] for take-a-look on policy response

By Michael Winfrey

PRAGUE, Feb 18 (Reuters) - Poland's central bank exchanged European Union funds for zlotys to halt a violent slide in its currency on Wednesday and other of the bloc's newcomers rushed to staunch an acceleration in a months-long regional selloff.

The Union's executive Commission voiced worry over the huge drop in the Polish zloty, the Czech Crown, Hungarian forint, and other currencies, which has caused some firms to fail and hit millions across eastern Europe who have borrowed in euros and Swiss francs.  Continued...

 
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