Bank of America: Forint is very popular, one of the investors’ favourites

The Bank of America published its latest report on the most popular currencies of the globe’s emerging markets. Hungary’s national currency was also listed among them. According to bank, those who invest in Hungary’s forint may realise a double-digit percent profit.

Világgazdaság, a Hungarian economy news daily, analysed the latest report of the Bank of America. They said that the BofA mentioned the forint among the currently favoured currencies by investors even though the future of the Hungarian national currency is still shaky.

This week saw forint strengthening again. The currency exchange rate against the euro dropped below 370/EUR, a psychological barrier, multiple times. Considering that a couple of months ago, forint reached historic lows against the euro (and the USD) being even above 430/EUR, that is a remarkable victory.

A strategist of the BofA, David Hauner, mentioned five popular emerging market currencies: the Brazilian real, the Hungarian forint, the Indonesian rupiah, the Thai baht and the South African rand. He calculated with a 12 percent yield in USD. In some cases, that may reach 20 percent. Furthermore, the Bank of America projects a 360/EUR exchange rate by end-2024. The forint used to stand at that level in the end of 2021 and early 2022.

Hungarians do not trust forint

Based on the bank’s model, forint is exceptionally vulnerable to global crises. However, they think investors should buy forint instead of Polish zloty. They added that all emerging markets need a weak dollar to strengthen their currencies. In the past year, the USD decreased by 5 percent against the euro, which helped Poland, Romania, Hungary and other emerging European markets.

We reported on it HERE that Hungarians still do not trust the forint. They buy outstanding amount of foreign currency.

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