• Hungarian forint
  • Budapest
  • Police news
  • HelloMagyar
[gtranslate]
[gtranslate]
Central bank’s surprise knocks back the Hungarian forint on Wednesday morningCentral bank’s surprise knocks back the Hungarian forint on Wednesday morningCentral bank’s surprise knocks back the Hungarian forint on Wednesday morningCentral bank’s surprise knocks back the Hungarian forint on Wednesday morning
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Important
  • A lot of summer Wizz Air flights can be cancelled due to engine error

  • Poisonous Hungarian vegetable mix in the shops!

  • Long weekend in Hungary: shop opening times change considerably

Support us
Hetzmann Mercédesz Hetzmann Mercédesz · 19/04/2023
· Business

Central bank’s surprise knocks back the Hungarian forint on Wednesday morning

The Hungarian forint was in full blast on Tuesday, even peaking below the 370 level against the euro. It also reached a one-year high in the evening hours on Tuesday, hovering at 369.52. However, this strength seemed to fade by Wednesday morning when it emerged that the central bank could touch the upper end of the interest rate corridor as early as next Tuesday’s meeting.

The National Bank of Hungary (Magyar Nemzeti Bank, MNB) could touch the upper end of the interest rate corridor as early as next Tuesday’s meeting, according to an interview with the vice-president of the central bank. The market interpreted this as a sign that central bank easing could be on the cards, Index reports. After this, the forint was pushed back from 371 against the euro this morning to 375.

On Monday morning, the Hungarian currency successfully stormed the important level and climbed below 372 against the euro. With this, the Hungarian currency set a new high for the year. The forint continued to rally on Tuesday, reaching a one-year high of 369.52 in the evening hours.

However, on Wednesday morning, an interview with the central bank’s vice-president, Barnabás Virág, was published on Világgazdaság. In the interview, he said that

“extreme risk scenarios have been priced out, there is no longer a need to maintain such a large margin, so a decision on a more significant narrowing of the upper end of the interest rate corridor could be taken at next week’s Monetary Council meeting.”

Following the announcement, the forint stopped at Wednesday morning’s close to 371 against the euro, and then weakened to above 375 against the common Europea currency. It remains to be seen where the fall will stop.

If you would like to support the work of the Daily News Hungary staff and independent journalism,
please make a donation here
currency exchange euro forint money National Bank of Hungary
Share

Hot news

  • PHOTOS: Travel to the Adriatic from Budapest by train

  • Hungary among the best European countries for outdoor workouts

  • PHOTOS: Hungarian animation film wins in Cannes

  • PHOTOS: Unique Hungarian castle garden opened

  • Hundreds of thousands of Hungarians attended the Pentecost mass in Csíksomlyó, Romania

  • Hungary blocks the newest EU sanctions package against Russia

Related posts

Wizz Air London Luton
28/05/2023

A lot of summer Wizz Air flights can be cancelled due to engine error


Read more
28/05/2023

Poisonous Hungarian vegetable mix in the shops!


Read more
Hungarian forint state budget
27/05/2023

Forint continues to strengthen: Sunday will be its black day?


Read more
Shopping Hungary long weekend
27/05/2023

Long weekend in Hungary: shop opening times change considerably


Read more

4 Comments

  1. Larry says:
    19/04/2023 at 13:46

    The easy money in the carry trade was made and it’s going to reverse on any interest rate cuts or discussion of cuts. The strength in the forint over the past 6 months was purely due to high interest rates sucking in dollars and Euros to convert for forint interest accounts. That’s going to leave. It’s not a good situation for Hungarians because the cuts will be gradual over time but the corresponding drop in the forint will raise the cost of imported goods which is inflationary which limits how much you can cut rates. Orban has really trashed the Hungarian economy with the highest inflation rate in Europe. Hungarians are really paying for it but they are not smart enough to realize it’s their government who is to blame.

  2. Norbert says:
    19/04/2023 at 16:56

    @Larry nice job on the explanation – thx

  3. Jimmy says:
    20/04/2023 at 13:30

    When Forint is strong, then it’s not good because of …..
    When is weak again Orban is quilty.
    What is good for you people?

  4. Larry says:
    21/04/2023 at 00:48

    The temporary strength in the forint was artificially caused by the Central Bank raising interest rates to extreme levels. No one in Hungary can afford to borrow money now at 18% so that is recessionary. Ideally you want stability in currency exchange and relatively low interest rates. A lower forint is good for exports but increases the price of imported goods. Look up articles about the global competition to depreciate local currency to promote export growth. More recently we have had the opposite which has been termed “reverse currency wars” to appreciate local currency to counter inflation. A little complicated but that is exactly what Hungary is doing. The problem is that inflation is still 25% in Hungary. US inflation is now 5%. The end game of reverse currency wars is widespread recession and an eventual end to inflation.
    https://www.businessinsider.com/reverse-currency-war-why-central-banks-inflation-fed-pound-dollar-2022-9

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US
  • Facebook
  • Twitter
  • Instagram

Must read

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.


Thank you!

You have successfully joined our subscriber list.


.

About us

Contact us

Copyright rules

Privacy policy

Advertise with us

© 2023 DailyNewsHungary. All rights reserved! | Server and development by Svigelj Levente E.V
PHOTOS: Travel to the Adriatic from Budapest by train

PHOTOS: Travel to the Adriatic from Budapest by train

Read More
Hungary among the best European countries for outdoor workouts

Hungary among the best European countries for outdoor workouts

Read More
PHOTOS: Hungarian animation film wins in Cannes

PHOTOS: Hungarian animation film wins in Cannes

Read More
PHOTOS: Unique Hungarian castle garden opened

PHOTOS: Unique Hungarian castle garden opened

Read More
Hundreds of thousands of Hungarians attended the Pentecost mass in Csíksomlyó, Romania

Hundreds of thousands of Hungarians attended the Pentecost mass in Csíksomlyó, Romania

Read More
Hungary blocks the newest EU sanctions package against Russia

Hungary blocks the newest EU sanctions package against Russia

Read More
PM Orbán invites Qatar investors to buy Budapest Airport

PM Orbán invites Qatar investors to buy Budapest Airport

Read More
Hungarian historic adventure film Hadik screened in Washington

Hungarian historic adventure film Hadik screened in Washington

Read More
A lot of summer Wizz Air flights can be cancelled due to engine error

A lot of summer Wizz Air flights can be cancelled due to engine error

Read More
Houses, hotels will be built at Lake Fertő?

Houses, hotels will be built at Lake Fertő?

Read More
  • 0
  • 1
  • 2
  • 3
  • 4
Have you read it?