Subscribe to our social channels to get the latest news about Hungary!
Historical low: EUR soon to cost HUF 400?!
Change language:
Inflation has recently reached unprecedented levels in Hungary. On Friday afternoon, the Hungarian currency reached a new historic low, with one euro selling for more than 386 forints on the domestic interbank foreign exchange market.
According to Portfolio.hu, the region’s currencies have weakened significantly in recent days due to the Russian-Ukrainian war. However, the pressure could gradually ease, according to a Reuters poll of analysts.
The forint, the Polish zloty, and the Czech koruna have also weakened drastically in recent days, with the Hungarian currency falling to a new all-time low of over 383 against the euro on Wednesday.
This is mainly a result of international risk aversion caused by the Russian-Ukrainian war, with investors now looking to currencies seen as safe havens, Portfolio.hu writes.
According to mfor.hu, the Bank of Hungary’s interest rate hike on Thursday proved to be ineffective, raising the interest rate on one-week deposits by 75 basis points to 5.35%. Considering that the euro started this week below 370 forints – meaning that the domestic currency has weakened by 16 units in just five days -, if this insane weakening is not curbed,
Forint – is under MASSIVE attack.
Reasons are broad in range – just not the esculating War on our boarder, but “Stretch” outside – that includes questionable Economic & Financial Management – of Hungary – that has created a massive Debt position, by the present Government, culminating with an “out of control” inflation impact in Hungary – which ALL are Factors – not ALL of them – as to WHY we continue to see this downward devaluation trend – of the Hungarian Forint.
Abolish forint and adopt euro currency
A steady slide in the forint since 2010… why does that date resonate? Wait what else happened since 2010? Right a few friends of the government became very wealthy. Perhaps robber barons aren’t good for the economy?