Język Polski
English
Functioning of the contemporary Foreign Exchange Market and its impact on the lending market in Poland
Abstract
The purpose of this material is an analysis of the processes of fixing the FX rate on the FX market in the context of the interference of the Polish Consumer Protection Authority and the courts in the content of mortgage loan contracts denominated or indexed in foreign currency. In particular, it was analyzed whether the average currency rate – binding in a particular moment – may be deemed to be more or less beneficial for any party. Empiric research confirms that in the conditions of contemporary market economy and effective FX market, it is neither possible nor beneficial to influence the FX rate for the benefit of any market participant. The conclusions are that the most important thing is to protect the rules of market competition in which all deviations from commonly accepted practice are naturally eliminated. This reflection should be always made during discussions on abusiveness questions and its excessive use for the benefit of one of the parties, in order not to forget about more general approach with respect to the consequences.
Keywords:
currency market, foreign exchange market, FX market, loans denominated in foreign currency, loans indexed to foreign currency, average FX rate, bid rate, ask rate, spreadJEL Codes
E4, E5, G1, G2Details
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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.