The American dollar broke a new psychological barrier against forint
PM Orbán talked about a fantastic 2025 concerning the country’s economy and economic growth, but it seems markets do not share his optimism. For example, the American dollar broke another psychological barrier against the forint, while the euro continues to strengthen against the Hungarian national currency.
Gradual forint weakening
According to the Hungarian News Agency, “the forint traded at 415.56 to the euro around 5:30 on Friday evening, softening from 413.64 late Thursday. The forint edged up to 403.53 from 403.67 against the dollar. It slipped to 443.71 from 442.37 to the Swiss franc.”
On Friday, the euro traded at 416.01, which is not far from the 2-year historic low of 19 December 2023. Furthermore, it is not far from the 423.8 low of 8 October 2022. What’s even more troubling is that the forint’s weakening against the common currency has been gradual in the last few months, as you may check out below:
Hungary’s 2025 state budget was calculated with a 397.5 EUR/HUF currency exchange rate.
The American dollar broke a new psychological barrier
The strengthening of the American dollar is also gradual, and on 2 January, it broke another psychological barrier, exceeding 400 USD/HUF. Now, it is trading at 403.24/USD. The historic low was also on 8 October 2022, when the American currency cost 435.57 forints. This week, its maximum was at 405.093.
According to 444.hu, there are multiple reasons behind the weakening of the forint. Some of these are the low Hungarian base rate, the slow Hungarian economic growth, the high budget deficit, the Orbán cabinet’s clashes with the EU, and the lost EU funds. According to Portfolio, the Hungarian economy’s only hope is Trump, who may turn the global economy upside down with new and increased customs and protectionist measures.
There are no regional reasons behind the forint’s fall since it fell against the Polish zloty. On Friday, the zloty traded at 97.432, close to its historic maximum (97.961). Currently, one zloty costs 97.35 forints.
Read also:
- Is the opening of the Russian chain store Mere in Hungary not so certain after all? – read more HERE
- Main goods transport artery, Budapest’s Gubacsi railway bridge, may collapse into the Danube – check out the details and some photos HERE
Featured image: depositphotos.com
It took all of three days to blow out the Fidesz government’s 397 forint to euro fantasy budget projection by roughly 5% with another 362 days to go. What brains do the people have who actually take anything they say seriously?
Hungarians celebrating that this means a sudden increase on avg net salary according to orban wage increase plan. Cheer up!
Mihaly Varga, his “Shuffle” – through the “massive” pressure on him, inclusive of “constructive” criticism, the role he played in the recently concluded 6 months of Presidency, that Hungary “participated” in, this “tone” and opinion(s) from in-side the Orban led Fidesz Party, as a FAILED dismally – Minister of Finance, observing, the on-goind DECLINE of the Hungarian economy, that his Financial & Economic Policies, from his desk, have taken Hungary, into the CHAOTIC disorderly MESS we are in, that Worsens.
Varga – the “protected” species he is, his main protector being Victor Orban – the “Shuffle” of Varga, that for Orban, the lack of competences / ability – of Mihaly Varga, in his “new” role, on the Economy and “other” – that comes from the decisions made out of the Central Bank of Hungary – will be, as is the reputation of Mihaly Varga a – DISASTER.
Varga – his “Shuffle” to be the Governor of the Hungarian Central Bank – FOOLHARDY.
Judging from the exchange rate record (MNB data bank) we can expect more of the same kind of performance from the Forint in the future……..or worse. When you consider that Hungary’s New Constitution was drafted behind closed doors and modified numerous times after being introduced, it’s unlikely that politically appointed new MNB leadership will treat the Forint any better. We have a sick nation because our Hungarian Constitution was ravaged by the ruling politicians. We have a sick economy because both government revenues and expenditures have been violated in the same way.,,,,,,,that is, twisted for political purposes. Don’t expect any improvements under the current regime.
Your readers should know the opposition leader received the US highest honor- the metal freedom. Mr Soros the biggest money behind the DNC and now the dying few days of Biden regime for the last 25 tears and the money behind the opposition in hungary ..
If you can’t deal with you own failure you can always bring up the myth of George Soros as an explanation. That one has grown quite stale.