Forint on a slope again, and the worst may come next week
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Forint broke crucial barriers this week, reaching the 390/EUR level again. That means the Hungarian national currency may weaken to 395/EUR next week, so the 400/EUR psychological barrier will be closer than ever before in the past half year. Forint was above 400/EUR last December.
As we wrote earlier, statements about possible tax increases in the banking sector mentioned by Hungary’s finance minister at a Thursday conference harmed the forint considerably. Furthermore, Hungary’s national bank governor, György Matolcsy, slammed several government measures, including the price cap schemes and the skyrocketing expenditures before the 2022 general elections. As a result, the forint hit 388/EUR by Friday but has not stopped there.
The Hungarian national currency continued its journey on that slope over the weekend. Currently, it stands above 390/EUR, and experts believe we should not expect anything good in that regard next week.
The weakening of the forint started with the interest rate decision of the American Fed. The American bankers did not change the rates, which hit the forint hard. According to Világgazdaság, a Hungarian economy-focused news outlet, the forint may weaken to 395/EUR next week.
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This is the reason for the highest inflation in Europe
The on-going developing “Differences” of opinion, could be called a Feud, transpiring from the National Bank of Hungary, its Governor – Gyorgy Matolcsy and the Minister of Finance – Mihaly Varga – in the on-going, in my opinion, that Varga is sending Hungary, that are “signed off” by Victor Orban – FASCINATING.
Mihaly Varga – is being Shamed and Blamed rightfully for the “collapsing” of the Hungarian economy, that through his decisions, that he bears rightfully OWNERSHIP of, that Varga, has PLACED our Economy in at this point in time, which will WORSEN.
The year was 2003, that Mihaly Varga, then under title know as the Minister of National Economy took responsibilities that centered on, the Economic & Finance position of Hungary.
Mihaly, underwent a title change to his Senior Ministerial Portfolio in 2018, that is the position we know he occupies to-day as Finance Minister of Hungary.
Mihaly Varga is a protected species of the Fidesz Party, being one of its Founding Fathers.
The Governor of the National Bank of Hungary – Gyorgy Matolcsy – displays, he has a greater understanding of the problems created by Mihaly Varga, and solutions, that may bring about a far less pressurized position of the collapsing Hungarian economy.
Gyorgy Matolcsy, is of fair greater Economic & Financial intellect and knowledge, than the present, been in the chair since 2003 – Finance Minister of Hungary – Mihaly Varga.
Mihaly Varga and Victor Orban – pre the February 2020 arrival of the Corona Virus in Hungary, they by EXPERTS where being warned, that Economic & Financial policies, the direction signed off and embarked by Varga and Orban – had deep of DANGER associated to them, that left the Hungarian economy in a sensitive, exposed and vulnerable position, in the event, the coming of un-certainties, that would have major ramifications on the Hungarian economy.
The Corona Virus arrived, and the Prime Ministers “mate” commenced a War against the Ukraine.
The disintegration – relationship of Hungary with the European Union, the “ownership” doings of Victor Orban – another “nail” in Hungary’s casket.
Mihaly Varga is somewhat a troglodyte character, adapting a persona of being deliberately ignorant and old fashioned.
Varga is not a visionary of the 21st century, displayed exercised – from the Senior Ministerial Portfolio of his RESPONSIBILITIES, in the Orban Government.
The forint is PRESSURE cooker, that will succumb to forces, that will see it CRUMBLE, sooner than later.
The voice & opinions being expressed challenging Mihaly Varga, embarrassing Varga somewhat, from the Hungarian National Bank Governor – Gyorgy Matolcsy – will PROVE to be RIGHT.