Złoty is about to suffer a painful blow. "It's already clear"

• Rafał Trzaskowski and Karol Nawrocki will face off in the second round of the presidential election. The difference in the number of votes won by the candidates of the Civic Coalition and PiS is small.
• The Polish currency weakened against the euro and the dollar on Monday morning.
• If Trzaskowski does not win, Poland may face political instability and a return to populism, economists say.

The National Election Commission has announced the presidential election results from 99.9 percent of electoral commissions. According to them, Rafał Trzaskowski is leading with 31.3 percent of votes. Karol Nawrocki came in second with 29.5 percent.

As Bloomberg noted, Trzaskowski's narrow victory in the first round and the growth in support for candidates with nationalist views may increase the pressure on the zloty and Polish stocks.

• On Monday at around 7:30 a.m. the zloty weakened by 0.49 percent against the euro , which was valued at almost PLN 4.29.
• The Polish currency exchange rate against the dollar, which was PLN 3.83, weakened by 0.18%.
• In turn, the Polish currency weakened by 0.51 percent against the Swiss franc - the franc cost 4.58 PLN.

Piotr Bielski, chief economist of Santander Bank Polska SA, in an interview with Bloomberg pointed out that if Trzaskowski does not win , Poland may face political instability and a return to populism.

This will not be an attractive prospect for foreign investors, and such reasoning is quite common among large investment funds, especially from the US, Bielski said.

- It is already clear that the race will be very close - said Raffaella Tenconi, senior economist at Wood & Co. - If Nawrocki wins the presidency, the government will be very limited in pursuing its policies. This could cause nervousness around Polish assets, including stocks, which have performed exceptionally well so far - she added.