The paper deals with the profitability of loans denominated in a foreign currency or indexed with the changes of the exchange rates of a foreign currency versus the zloty. This is done against the background of the current trends in the Polish currency market. The method assumed in the paper is to identify the threshold level of the exchange rate of the indexation currency at which the cost of a zloty and currency denominated loan is identical. Having established this, the author indentifies the key factors affecting the profitability and risk levels of the instruments under analysis, such as the term of the loan, foreign vs. domestic interest rate differentials, the expected time of a slump in the value of the domestic currency. The direction and strength of the relations have been also described.