Hungarian Forint reached its historic low against Euro today!
This week, Hungarian Forint has reached its lowest level ever. On Monday, 1 EUR was HUF 372.21.
After having reached two historic lows against Euro last November, we did not expect that soon the Hungarian Forint would reach its lowest level ever.
As a result of the Russian-Ukrainian war, the new historic low of the Hungarian currency has been reached today.
As the Hungarian news portal hvg reports, Hungarian Forint started to fall last Thursday, minutes after the Russian attack. On Thursday, the value of the forint depreciated by 10 points in one day, reaching the 370 level by the end of the day. On the weekend, a slight improvement could be observed. Investors calmed down a little and the Hungarian currency started at 367 on Monday morning.
During the day, however, it quickly started to fall, and as soon as European stock markets opened,
Hungarian Forint has reached its lowest level ever: 1 EUR was HUF 372.21.
According to Portfolio, the weakening is not due to Forint-specific factors.
The primary reason behind the weakening of the Hungarian currency is the Russian-Ukrainian war.
The conflict has triggered a general risk aversion in the market, as investors seek to get rid of any assets that are even slightly risky. This is affecting all emerging currencies, including the forint, while currencies that are considered safe, such as the dollar, the Japanese yen and the Swiss franc, are strengthening.
It is difficult to counter the weakening. Even if the Central Bank of Hungary cannot influence international sentiment, it does have the means to dampen these effects. One option is intervention in the foreign exchange market, but it is questionable how successful this can be in a situation like the current one.
Another practical option for the central bank is to raise interest rates. Last week, as in January, the base rate was raised by 50 basis points and the one-week policy rate by 30 basis points. Based on the communication so far, the next tightening is not expected until the end of March, but the MNB has always reserved the right to flexibly raise the one-week rate in response to market volatility. The question is whether they intend to react to the current market situation.
UPDATE
March 1, 2022: Hungarian forint sinks steadily, reaching a historic low against the euro. Read details HERE.
Read alsoHungary offers to hold peace negotiations in Budapest!
Source: hvg.hu, portfolio.hu
The Hungarian Forint – is being SMASHED – to record levels – devaluation against – all Major currenices of the World.
Prime Minister of Hungary – Victor Orban – the “Squeezed” position he finds he is in – and he and his Government – have placed Hungary.
“Never forget your friends on the way up – because you may need them on the way down” and we Hungary – in the EU and Europe and the wider world – because of the LOSS of Friendships – playing or attempting to outsmart others, building and encourageing embracing – Friendships – like Russia & China – over and above – forgetting to look at – whats best for HUNGARY – its Citizens.
We are witnessing – growing daily in evidence – the WRONGNESS – in the Political Ideas and Philosophy – that has been undertaken by the present Prime Minister of Hungary – Victor Orban and the Fidesz Party.
Hungary – an Economy that is becoming “Shambles” like – not forgetting prior to this invasion by Russia on the Ukraine, the RISING borrowings – Debt of the Hungarian Government, in its attempts to “hold” the economy of Hungary to-gether.
The FRIENDS – we Hungary at this challenging time we REALLY need – they over-all have been pushed away – rid of – by the Political ideas and philosopys – that has been a Government – of GREED – taken by the “Inner Sanctum” that makes up the Power House of Politics in Hungary.
WHEN – as another Factual revalation – are we going to see – publicly exposed printed – issued by the present Government – that the Property Market(s) in Budapest, Hungary – the broadsheet Property Market – is in CHOAS – that could lead to a Carnage ???
Freedom of Press – likened to the Judical – in Hungary – NEEDS – reinstated – without a Government – as is the present case in Hungary – telling Press nor the Judiciary/Legal Profession of Hungary – whats Right or Wrong – and DO it – our Way.
National Elections April 2022 – in the History of Hungary – especially post 1989 – without a Shadow of DOUBT – has there been a time – that the VOTE – the proud people of Hungary – the vote they cast – what FUTURE for Hungary – are they SUPPORTING ???