Hungarian forint has fallen to a low we have not seen for months
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The Hungarian forint has shown a sharp weakening, finally hitting lows seen months ago today.
As we reported, according to a Financial Times article on Sunday, the European Union has drawn up a plan if Hungary continues to block the adoption of an aid package for Ukraine. Read the our article here – Brussels’ final warning to PM Orbán: Hungarian economy at risk if he vetoes
This is certainly the reason for Monday’s weakening of the forint, but it is also important to clarify that the Hungarian currency has been weakening against the euro since 8 January, and against the dollar since 10 January. This means that over the past 20 days, it has weakened by 15-20 forints against the two major currencies.
The last time the euro-for-sterling exchange rate was above 390 was in early October last year, so the forint is at a near 4-month low. Indeed, the Hungarian currency is now below 390, but it has been above it around noon.
- The euro was at 389.46 forints at 6:00 pm, down from 388.14 forints early this morning.
- The dollar rose to 360.42 forints from 358.06 forints
- The Swiss franc rose to 417.10 forints from 414.51.
Finance Minister – Mihaly Varga – your opinion PLEASE.
Interesting times in Hungary not sure how much damage the EU can and is willing to inflict but I am confident this issue will be resolved to suit all parties although I can certainly see and symphetize with the Hungarian government as Most of us are fully aware of the reasons Orban’s government is reluctant on any aid to Ukraine.