Is there a chance for the forint to recover?
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How far can the forint fall? When will this negative trend end? And is there still a chance for recovery? These are the questions that all Hungarians ask nowadays, but all of them are hard to answer. In turbulent times like this, giving an answer is like shooting in the dark. It is not possible to predict the future with a hundred percent certainty. However, in this article, we will try to bring you some answers.
From the report of Napi.hu, we can get some idea about the current problem and its duration. The main issue is that there are too many variables in this situation. A lot depends on the result of the negotiations between the European Union and Hungary in regard to the rule of law. If it is successful and the European Union transfers the money to the country, then there might be light at the end of the tunnel. According to experts, until the decision is not made, the forint will keep on depreciating. However, in case of an agreement, the forint might gain back its strength and some predict that it could go below HUF 400 against the euro. Nevertheless, it is also entirely possible that the forint will reach the HUF 500 exchange rate against the euro in the forthcoming future.
But the real question is, why is the forint doing so much worse than the Polish currency? Or the currencies of other nearby nations not using euro? I think one big reason not mentioned here is the huge amount of money the EU is withholding from Hungary because the politicians running the government here are more interested in stuffing their pockets and staying in power than in having anything approaching true rule of law.