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Hungarian forint hit another historic low!
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The Hungarian forint hit a new historic low against the Polish zloty following an unexpected decision of the Czech national bank.
According to portfolio.hu, the Czech koruna affected the exchange rate of the Hungarian forint the most in the second half of this week. The Czech national bank implemented a higher base rate cut than experts calculated before. As a result, the Czech currency started to plummet and reached a two-year historic low.
Meanwhile, the Polish zloty was able to strengthen even on Thursday. And that was enough for the forint to reach a historic low against the Polish national currency. The PLN/HUF exchange rate stands at 89.9/1 even now. The Hungarian currency set the previous historic low in November 2022 when it was almost in a free fall against the euro reaching even 430/EUR.
The reason behind the strong zloty and weak forint is that the Polish National Bank did not modify its base rate. Meanwhile, the Hungarian national bank cut it by 75 base points. Even though that was lower than the market expected, the forint could not evade weakening. The base rates stand at 10% in Hungary and 5.75% in Poland, which means that Hungary’s relative base rate advantage decreased.
Falling in love with the new forint numbers. Since I retired in Euros and moved to Hungary I’ve become a rich man. Thanks to Viktor and the wonderful policies of Fidez.
Sorry, sort of, for the feeble Hungarians who can;t see forward for always looking back..
Thanks for letting me stand on your backs.