Polish zloty down by 0.6 pct on c.bank tapes scandal

WARSAW, June 16 Mon Jun 16, 2014 3:01am EDT

WARSAW, June 16 (Reuters) - The Polish zloty fell 0.6 percent against the euro on Monday morning on concern about a secret recording of the central bank governor using an expletive to describe colleagues and discussing government business.

Some politicians had called for the governor, Marek Belka, to resign, though he said he had done nothing that was outside the bounds of his authority. At 0636 GMT the zloty was traded at 4.1430 to the euro, or 0.6 down on Friday.

"Foreigners have heard over the weekend that the scandal emerged in Poland concerning the central bank governor. The first reaction to uncertainty is closing positions on the zloty," a Warsaw-based dealer said.

"I don't think that foreign investors understand now what exactly happened, so they will be waiting for further developments. It is difficult to predict what their reactions will be," a dealer said.

The Wprost news magazine on Saturday released a recording of a conversation in a restaurant last year in which, it said, Belka told a minister he would be willing to help the government out of its economic troubles if the finance minister was fired.

He also used an expletive to describe the central bank's Monetary Policy Council, which sets rates. Belka chairs the council. Prime Minister Donald Tusk has said he will make a statement on the affair at 1300 GMT on Monday.

In statements and press interviews, Belka apologised to anyone offended by the crude language in the tapes, but said he had not stepped beyond the bounds of his authority as central bank governor. He said his words were taken out of context.

Analysts and sources close to the government told Reuters they thought it was unlikely that Belka would resign. (Reporting by Michal Janusz; Writig by Marcin Goclowski; Editing by Christian Lowe)

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