Hungarian forint may soon break through another important level
After a major rally last Friday, the Hungarian forint closed near 395 against the euro. This morning, the Hungarian currency started the week with a further strengthening, then weakened slightly
The forint strengthened against the major currencies on Monday morning compared to Friday evening. On Friday, the forint closed near 395 against the euro, a four-month high. Gas prices, which are the main drag on the forint, have fallen, the dollar is weakening and the dispute over Brussels funds has reached the finish line, breaking down several barriers to the forint’s advance.
This suggests that the Hungarian currency could remain below the 400 level for a long period, or even target a level below 390.
The euro was quoted at 394.10 forints at 8 a.m. on Monday, the dollar at 368.99 forints, the British pound at 450,78 forints and the Swiss franc at 398.75 forints.
9 AM
The euro was quoted at 396.46 forints at 9 a.m. , the dollar at 370.5 forints.
Euro for Hungary?
According to Eurobarometer and other opinion polls, two-thirds of Hungarian citizens want to adopt the euro. Similarly, business surveys show that a majority would benefit from joining.
Only the Orbán government sees it differently. The only substantive economic argument in favor of retaining its own currency is that the national currency provides a means of pursuing an independent monetary policy through its own interest rate setting and competitive exchange rate devaluation.
There are already hundreds of thousands of Hungarians who use the euro as an official currency. Some do not live in Hungary, but tens of thousands have their homes on Hungarian soil. But is it a realistic option for Budapest to introduce the EU’s official currency? And would that be advantageous for the Orbán administration? You may find the answers in our article HERE.
