In terms of the manner of settling transactions denominated in foreign currency, the content of an agreement concluded between parties is of great importance. The mere fact that the value of an obligation (such as the price of goods) is determined in a foreign currency in a contract does not automatically mean that the payment will be made in this currency. Those issues are regulated by the Civil Code. It implements the principle according to which, if the subject of the obligation is a sum of money denominated in foreign currency, the debtor may make the performance in the Polish currency unless the legal transaction stipulates that the performance is to be made in the foreign currency.
As a result, it means that:
- if the value of the obligation is denominated in foreign currency, and there are no provisions concerning the currency of payment, the debtor is allowed to choose and the payment can be made in the Polish zloty;
- if the value of the obligation is denominated in foreign currency and there are is an additional provision stipulating that the payment should be made in the foreign currency, the debtor is forced to make the payment in this currency.
Therefore, it is not enough to determine the price in foreign currency to ensure the payment in the same currency. To archive this purpose, an entrepreneur should include provisions in the contract, according to which the very payment ought to be made in a foreign currency.
Notice! Payments of amounts due made in foreign currencies and their acceptance is subject to restrictions resulting from the Foreign Exchange Law. More on the subject can be found in the article titled "Principles of money transfers".
Whereas, if the price in the contract is established in foreign currency without stipulating the form of payment, then the payment can be made in zloty. In such case, the price should be converted into zloty using an appropriate exchange rate. In a contract, parties may determine any exchange rate applicable to conversion of the price. If parties do not settle this issue in the contract, then a general rule applies. It stipulates that the value of foreign currency is determined according to the average exchange rate announced by the National Bank of Poland on the maturity date of the obligation.
The exchange rates mentioned above apply only to financial settlements between contracting parties and potential disputes arising between them. Whereas separate rules are applied in order to determine exchange rates for tax and accounting purposes (the actual exchange rate as of the date of issuing an invoice or the average exchange rate announced by the National Bank of Poland on the date prior to issuing an invoice, where the rate depends on such circumstances as purchase, sale and conversion of currencies).