Hungarian forint: Europe’s favourite currency

Hungarian forint
Photo: FB/MNB

In Europe’s Medieval era, the Hungarian golden forint held a prestigious status as one of the most favoured currencies on the ‘Old Continent’. This esteemed position was attributed to the resilience of Hungarian coins, as Hungary emerged as a leading producer of pure and high-quality gold in Europe.

Before the mid-13th century, the scarcity of good-quality gold in Europe hindered the creation of gold coins. Instead, gold coins flowed into Europe from the Middle East and Africa, where gold was abundant.

European monarchs and nobles, lacking good gold resources, crafted silver coins for long-distance trade. However, the constant devaluation of these coins, achieved by reducing their silver content, rendered them unreliable for ordinary people. Only the experts could tell by their appearance or other physical features how much silver these coins contained. The aftermath of the Crusades aggravated the issue, as Eastern products flooded the European market, challenging payment capabilities.

In response, Italian cities, starting with Florence and their fiorino d’oro, began crafting gold coins from imported gold, notably from the Mali Empire and Timbuktu. Following Florence’s lead, Genoa, Milan, Rome, the King of Naples, the French and the English embraced this approach. The stability of these golden coins stemmed from their producers maintaining their gold value.

Hungary enters the game with its valuable golden forint

Hungary’s entrance into the game marked a significant turning point. In the late 13th century, amidst chaos, Charles I (Károly Róbert) managed to acquire the throne, defeating oligarchs and establishing a powerful, centrally governed kingdom. Supporting landlords in gold discovery facilitated Hungary becoming the primary global producer of gold, meeting 11/12 of the world’s  (i.e. Europe, Asia and Africa) gold demand through Czech and Hungarian gold mines.

Charles I Hungarian forint
Charles I’s forint. The Anjou coat-of-arms. Photo: Creative Commons

Therefore, both kings decided to mint gold coins following the Florence pattern, which explains where the name of the Hungarian currency comes from. The Hungarian gold forints depicted the Anjou coat-of-arms and Saint Ladislaus (1077-1095), g7.hu wrote.

Those coins became extremely popular in Europe because they held their value for decades. For instance, in 1361, a debt owner told the Frankfurt am Main authorities that he would settle his debts in Hungarian forint.

In 1335, Charles I prohibited the export of unprocessed precious metals, reflecting the strategic importance of Hungary’s gold resources. However, this abundance posed challenges, causing goods production in Hungary to become expensive, affecting competitiveness in the markets and leading to trade balance issues.

Despite these challenges, Hungary retained its status as Europe’s second-largest gold producer until the discovery of America and the influx of Latin America’s gold, which eventually led to Spain’s bankruptcy.

The golden forints minted during King Matthias’s reign (1456-1490) also gained widespread popularity. These forints were reproduced in regions such as Russia, North Italy and the Habsburg Empire, but the forint remained distinctly a European currency, not reaching Asia or Africa. In the 15th century, Hungarian forint coins depicted the Madonna and Saint Ladislaus.

Mathias’s golden forint with Saint Ladislaus. Photo: Creative Commons

Read also:

  • ‘Who’ did we pay with? – the Forint throughout history – Read more HERE
  • TOP5+1 surprising facts about the Hungarian Forint in THIS article

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