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Hungarian forint getting stronger – how can that continue?
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This week was beneficial for the currency exchange rate of the Hungarian forint. This morning, 1 euro costs less than 395 HUF, and that process may continue. However, in the long run, the strengthening of the Hungarian currency needs external help. Below you may read more.
According to portfolio.hu, forint strengthened against the dollar. Today, one USD costs “only” 386 HUF. The reason is the weakening of the dollar. For example, the Polish zloty was on a similar trajectory as the forint.
Experts of the Nyugati pályán podcast, university teacher Dóra Győrffy, former deputy secretary responsible for energetics Attila Holoda, and economist Sándor Szabó agreed that there is only one way for the forint to get stronger on the long run. First, the Hungarian government must reach an agreement with the European Commission. Therefore, the country could get a lot of EU money, which may calm the markets and the investors. Furthermore, and this one is an utterly external factor, there has to be peace in Ukraine. As a result, the energy crisis might end in Europe, and the economy could thrive again.
Otherwise, the inflation will continue in Hungary, and it will be fuelled by, for example, a weak and weakening forint. They predicted that the euro-forint currency exchange rate might reach 420 in the coming months.
Interestingly, PM Viktor Orbán said that only direct American-Russian talks could end the war in Ukraine. He repeated that statement yesterday in his address to the CPAC in Dallas. “Without American-Russian talks, there will never be peace in Ukraine”, he highlighted.
Technical correction.
The Calm before the Storm.
WEIGHT of factual economic & financial anaylsis of the “various” parts/componentry – of the Hungarian economy, continue to HIGHLIGHT, that the forint – the economic outlook picture – immediate, short & long term for Hungary – is in a STRONG trending downwards Motion.