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Forint hits 400 historic lows against the euro, government blames Brussels
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With the Russian-Ukrainian war continuing unabated, investors have been extremely sensitive to the weekend’s developments, and the risk-averse mode is taking its toll on the forint.
The domestic currency is showing a sharp depreciation, hitting new historic lows and crossing the 400 mark. International sentiment then improved in the afternoon, with the euro coming all the way back below 395.
4:20 PM
The forint has been holding steady since reaching a low of 400, and is currently trading a little below 395. Compared to Friday, it still represents a significant weakening of over 2%.
Against the dollar, it has weakened even more, by 2.3% to 362.5.
Forint victim of Brussels sanctions
Finance minister
Hungary’s currency has become a victim of Brussels’s sanctions, which have caused substantial damage to the Hungarian economy, Finance Minister Mihály Varga said on Monday.
Mulling a decision to extend sanctions to the energy sector poses the gravest danger to the forint and to the Hungarian people, the minister said in a video posted on Facebook.
Those who advocate extending the sanctions want Hungarians to pay the price of war, he said.
“The Hungarian government will not support a move like this at any international forum,”
the minister said.
Not Soros’ fault, this time? Very disappointing! He must be involved, somehow. Or the Western Elite / Liberal Left … Missing them, too …
Ha ha ha. So true! The Hungarian victim complex at its finest – always someone else’s fault and always trying to deflect blame. They seem to be forgetting that the euro is not faring very well against the dollar at the moment and that will affect far more people – especially since oil and gas is paid for in dollars.
MyHungarian friends here in Budapest laughed when I bought a few million forints worth of gold in September as a hedge against inflation and the slow weakening of the forint.. They are not laughing now.