Hungarian forint has fallen to a low we have not seen for months

The Hungarian forint has shown a sharp weakening, finally hitting lows seen months ago today.

As we reported, according to a Financial Times article on Sunday, the European Union has drawn up a plan if Hungary continues to block the adoption of an aid package for Ukraine. Read the our article here – Brussels’ final warning to PM Orbán: Hungarian economy at risk if he vetoes

This is certainly the reason for Monday’s weakening of the forint, but it is also important to clarify that the Hungarian currency has been weakening against the euro since 8 January, and against the dollar since 10 January. This means that over the past 20 days, it has weakened by 15-20 forints against the two major currencies.

The last time the euro-for-sterling exchange rate was above 390 was in early October last year, so the forint is at a near 4-month low. Indeed, the Hungarian currency is now below 390, but it has been above it around noon.

• The euro was at 389.46 forints at 6:00 pm, down from 388.14 forints early this morning.
• The dollar rose to 360.42 forints from 358.06 forints
• The Swiss franc rose to 417.10 forints from 414.51.

Compared to the start of the year, the forint is 1.6 percent weaker against the euro, 3.8 percent weaker against the dollar and 1.1 percent weaker against the Swiss franc, 24.hu said.

read also:

• When will Hungary introduce the euro and what effect will it possibly have?
• Hungarian forint the weakest this year; decline may continue due to national bank decisions, details HERE.

And how long will the fall last?

A crucial EU summit is due to take place on Thursday, and with several members of the Hungarian government indicating that they will not give in to pressure from Brussels, the fall in the Hungarian currency could continue.

The Hungarian government has always tried to extract some concessions from the EU by blocking money for Ukraine and vetoing dozens more, and on Thursday we will see whether Orbán’s veto will work or whether EU leaders will tire of this kind of game-playing.

BUX closes down 1.4 pc