Hungarian forint breaks currency exchange level, additional weakening on the horizon
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We have reported earlies that this week was not the heyday of the Hungarian forint. It happened before that the exchange rate increased above 400/EUR, but did not remain there permanently. Now, it seems the forint broke an important currency exchange level, and experts believe it can reach 410/EUR soon.
Hungarian forint broke exchange rate level
According to Index, external reasons like the price rise of gas resulted in a 10% weakening in the currency exchange rate of the Hungarian forint. Our currency was weaker against the euro in December 2022 and against the dollar in October 2023. On Saturday, Israel carried out attacks against Iran, which will probably make the situation worse. Currently, the exchange rate stands above 404/EUR.
Dániel Molnár, a senior analyst at Makronóm Institute, said the international atmosphere was the key reason behind the fall. The US dollar strengthened against the euro, which resulted in the weakening of the forint and the Czech koruna. Furthermore, the Hungarian National Bank did not increase the base interest rate on Tuesday. The MNB is in a reduction program but postponed base interest rate decrease for months, so the MNB did what it could to halt the negative trend.
The increasing probability of Trump’s success was also bad news for the forint since the American dollar is expected to strengthen due to the higher tariffs Trump promises. We covered the disadvantageous consequences of Trump’s victory on the Hungarian economy in THIS article yesterday.
More disturbing news may emerge
According to Index, the forint changed its currency exchange level and is expected to remain in the 400-410/EUR range. Meanwhile, the US dollar will be in the 365-375 domain, Zoltán Varga, an analyst of Equilor Befektetési Ltd, said. Mr Varga added that the higher jobless rate the KSH shared on Friday was also disadvantageous for the forint.
FACT.
We know the principle culprit, that HAS caused the on-going destruction of the Hungarian Economy, that includes, the on-going DEVALUATION of the forint – that “Dud” being the Minister of Finance of the Orban led – Fidesz Government of Hungary – Mihaly Varga.
Varga – the Orban – Fidesz Government are STRANGULATED, in a “blackened” corner, faces to the wall, in what they can’t don’t have the facilities – to reverse the collapsing economy and the weakening forint in Hungary.
Varga – the Orban Government maybe BORROW “deeper” with China or Russia – another, if they do, perilous decision on the FUTURE of Hungary, with the amount – the GARGANTUAN debt this Orban – Fidesz Government have to SERVICE, inclusive of the European Unions “matters”.
Varga / Orban – will they HIT harder the people, the businesses/corporations of Hungary, through the introduction of HIGHER taxes ???
YES.
The Central Bank of Hungary, are in a HORRIFIC conundrum.
There ROLE, there Responsibilities – major role being CURRENCY – they like Varga & Orban – decisions arising out of the Central Bank of Hungary – to STABLIZE – the Forint, grows in being un-manageable, that will see the continuation of the “free fall” to lower levels of the Forint.
Will interest rates be Increased ?
Interesting weeks are before us – as the PIT our Economic and Financial, inclusive of currency WILL descend deeper into an un-known nadir.
The YOKE meaning ???
WORSENING times – Deterioration ahead – Hungary.
Wondering how can orban say “make Europe great again” (wow, very original) when the economy of gis country is going backwards. Amazing the amount of “support” that he still has, maybe in some years Hungary will be the Venezuela of the eu, Hungary even has its own Maduro in power.
NOTHING is getting cheaper in Hungary.
SUPPORT for the Orban – the Fidesz Government of Hungary factually is under GROWING rightfully PRESSURIZATION.
Facts are there that SUPPORT the CHAOS overall – Economically, right throughout the Governance of Hungary, under the Orban – Fidesz Government.
Hungarians – though multitude of numbers of citizens – millions in FACT – NATIONALLY – have come, continue to come – and grow in coming – to there senses, realizing the FAILINGS of 15 years being Governed by the Orban – Fidesz Government, there BASTARDIZATION of Hungary, delivering us as a country to the state position we are in today.
MASS numbers of citizens are still needed, the POWER of PEOPLE – to totally eradicate dispose of this Government – who continue to DESTROY this country.
SOLIDARITY – being led by an OPPOSTION Party that only speaks in TRUTH, confronting the Orban – Fidesz Government, there principle weaponry as an alternative Government, that are going to CREED – in there Policy decision making firstly ;
(1) – what’s BEST firstly for ALL Hungarians
and secondly;
(2) – what’s BEST for Hungary.
Orban – the Fidesz Government of Hungary – must be FOUGHT / CHALLENGED the inflicts – displays exposes deeper – in HUMILIATING the “Heinous” functionality of the Orban – Fidesz Government of Hungary.
The OPPOSTION tabling or replying to the Orban led Fidesz Government of Hungary that is Truth and supported by FACTS.
If this is not the CREED of the OPPOSITION Party – HONESTY & Truth if needed tabling/presenting of FACT’s – in it’s presentation as an alternative Government, as a country Hungary will DEEPEN the likelihood of it’s already appearing PERILOUS place and cataclysmically DESTROY it-self.