Hungarian forint doing something unprecedented: further slip expected – UPDATED
Gergely Gulyás, Minister of the Prime Minister’s Office, said the government does not have a goal concerning the interest rates and the currency exchange rates. Gulyás added that the Hungarian National Bank had to stop the forint’s fall. Experts do not exclude a 403 EUR/HUF rate.
According to 24.hu, Gulyás told the Hungarian press today that foreign causes are behind the weakening. The government does not have a goal concerning the interest rates and currency exchange rates, he added. Gulyás said the Orbán cabinet did not change the deficit target, it remained at 4.5%. He suggested the weak forint is an issue the Hungarian National Bank should solve. Furthermore, foreign reasons are behind the fall of the Hungarian national currency. Therefore, they hope an opposite trend will start soon.
Gergely Gulyás in the Tisza Castle in Geszt briefing press after the government meeting finished. Photo: MTI
Even a 403 EUR/HUF exchange rate is imaginable
Experts talking to index.hu were not that optimistic. The forint is currently at a 1.5-year low against the euro. The main reason behind the weakening is the Iranian missile attack against Israel.
The forint weakened further on Thursday, after slipping past 400 to the euro on Wednesday. The forint traded at 401.47 to the euro around 5:30 in the evening, weakening from 400.48 late Wednesday. But at 1 PM, it reached even the 402 EUR/HUF exchange rate level. The forint softened to 364.52 from 362.70 against the dollar. It eased to 427.00 from 426.67 to the Swiss franc, the Hungarian News Agency wrote.
Photo: deposiphotos.com
Zoltán Varga, a senior analyst of Equilor Investment Ltd., could not exclude the 403 EUR/HUF exchange rate in a quick analysis to index.hu.
Investors try to avoid risks
Other external bad news also affected the forint in the last few days. For example, even Christine Lagarde, the head of the European Central Bank, was concerned about the dissatisfying Eurozone growth data. Moreover, Jerome Powell, President of the Fed, sent a message boosting the American dollar, which always threatens emerging currencies.
All in all, investors try to avoid risks, which is disadvantageous for the forint.
Hungarian government weakens the forint
Meanwhile, Portfolio, a Hungarian economy-focused magazine, suggested that the Orbán government intentionally weakened the forint. That is because one of the main elements of the Hungarian economic model is competitiveness. However, Hungary’s competitiveness is falling due to the financial crisis, the ailing exports, the unnatural wage rise, the high-pressure economy and high inflation. As a result, the continuous weakening of the forint is favourable for the Hungarian government’s economic aims. For example, Gergely Gulyás talked today about an ambitious minimum wage rise until 2028. Meanwhile, the Polish zloty reached a historic peak against the Hungarian forint.
Hungary makes strides in improving business environment
Hungary is among the best performing countries in the World Bank’s Business Ready 2024 report that assesses the regulatory framework and public services directed at companies, the National Economy Ministry said on Thursday. Hungary ranked at the top of the regulatory framework pillar of the B-Ready 2024 report, among 50 countries. It was in fifth place in the public services pillar and in 14th in the operational efficiency pillar.
UPDATE: Forint little changed to euro on interbank forex market
The forint traded at 401.56 to the euro around 10:00 in the morning on Friday, little changed from its rate of 401.47 late Thursday. The forint firmed to 364.19 from 364.52 against the dollar. It eased to 427.44 from 427.00 to the Swiss franc.
UPDATE 2: Orbán believes the forint loses its value due to the Lebanese conflict
PM Viktor Orbán gave an interview to the public media on Friday morning saying that the forint loses its value because of the Lebanese conflict.
Read also:
- Morgan Stanley predicts euro could reach 410 forints amid worsening economic outlook – read more HERE
- Euro/forint exchange surpasses 400
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The Real Person!
The Real Person!
Its ALL in the GROWING parcel, the MESS, the CHAOS – predominantly effected through, the Financial and Economic Policy’s undertaken, designed initiated by the Minister of Finance – the growing EMBARRASSMENT to Hungary he becomes, the “Dud” – exhibiting his incompetency – Mihaly Varga.
In cohorts signed off by his PROTECTOR, being a Founding Member” of the Fidesz Political Party, muchly part of the “inner sanctum” of the Fidesz Pary and with the Oligarch, who’s have humongously been FAVOURED – for there pockets and wealth – by the Minister of Finance – “policy’s of favour” – and jointly “signed off” by and with, the “infamous” current Prime Minister of Hungary – Victor Mihaly. Orban – his PROTECTOR.
The political atmosphere GROWS in Hungary, through the growing PRESSURIZATION on Victor Mihaly. Orban – his “Heinous” Fidesz Government, besides imploding, movement of the BLAME game internally inside of Fidesz, by Ministers of the Orban Government, endeavouring to “cover there arses” – hide there corruptive GAMES they have used, forced on the Hungarian Population – just the FACT of 3.1 million and rising Hungarians living in POVERTY which is APPALLING, what the Fidesz Government, under Victor Mihaly. Orban – have DELIVERED us to as a country – over the course of the last 15 years.
Is it the PURGE factor, the word from the Big Mouth of Victor Mihaly. Orban – has started to rightfully SCARE them ?
What a “Blood Bath” and factually its ALL propaganda the Purge of Orban, but if INTRODUCED – played out, initiated by the “infamous” Prime Minister – Victor Mihaly. Orban – the Fidesz Party would be DESTROYED from the party “inside” war and POWER games.
Gergely Gulyas – member of the “inner sanctum” aspires to one day, sooner than later, sit in the Chair as Prime Minister of Hungary, a “Gofer” of Victor Mihaly. Orban – gargantuan supporter of the Orban plan – the DISTILLATION of Democracy in Hungary, and a humongous outspoken supporter, to the growing partnerships and relationships with COMMUNIST – China and Russia.
It will become turmoil inside the Fidesz Party – growing chance of and the “Blood Bath” and “Blood Letting” – the attacks inside Fidesz – that hopefully is in there GROWING demise – will be GLORIOUS to WATCH.
PRESSURIZATION – not a day passes it GROWS on Orban – his ill-fated, heinous Government of Hungary, for the DESTRUCTION, the loss of Respect, the loss of Friendships with country’s of DEMOCRACY, sending us as a country on a NADIR path, that its end, remains the un-known.