Will Hungary’s forint get stronger or weaker due to the government’s latest decision?
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The Hungarian government decided yesterday evening to scrap the fuel price caps introduced last November to keep the soaring prices at bay. It seems that yesterday’s resolution helped the Hungarian forint to strengthen against the euro this morning.
According to portfolio.hu, the exchange rate of Hungary’s national currency bettered this morning against the euro. Currently, the rate is around 410, 0.35 percent lower than yesterday evening. However, yesterday the forint was above 415. That is bad news because the exchange rate has been between 405 and 415 since October. If there was a trend change and the forint broke the 415 thresholds, that could open a path of weakening for the Hungarian currency exchange in December.
The good news is that the Hungarian national bank did not modify the interest rate of its one-day deposit quick tenders. That remained at 18 percent, the Hungarian economic news website wrote.
The external factors affecting the forint’s value remained unchanged. First, the international business atmosphere, second the November Hungarian inflation data is to be published later today. However, both will probably be disadvantageous. Finally, the question of EU funds is still not resolved. Hungary got access to the RRF amounts but was refused to receive the development funds. Budapest badly needs both sources. The media speculates that this could be the reason why Hungary vetoed the joint EU loan for Ukraine.
The figure quoted is the Magayar Nemezeti Bank official central exchange rate. This bears no relation to what people as individuals or companies have to pay to buy euros. I look at the rates every day and this is a much better picture of the truth: https://www.mkb.hu/friss-informaciok/arfolyamok
Hungarian economy and inflation rate is like shit,
Hungarian economy and inflation rate is the worst. I don’t know how people can tolerate this much!