Hungary may be rethinking its cash system: 100k banknote and 500-forint coin ahead?

The fate of the 5-forint coin has been a topic of debate in Hungary for years. While the Hungarian National Bank (MNB) officially maintains support for the current denomination structure, a recent analysis suggests it may be time to reconsider the country’s cash system. According to a report by Pénzcentrum, it may be reasonable not only to phase out the smallest coin but also to introduce new banknotes and coins.

The 5-forint coin on the brink of obsolescence

In day-to-day life, it’s becoming nearly impossible to find anything that costs just 5 forints. Often forgotten in drawers, the coin now costs more to produce than its face value, according to Pénzcentrum. Not surprisingly, Hungary previously discontinued the 1- and 2-forint coins, citing unprofitable production. A similar trend has occurred across Europe, where several eurozone countries have stopped minting 1- and 2-cent coins and instead round prices automatically.

Do we need bigger denominations?

The debate around currency doesn’t end with small change. Based on the internationally recognised D-metric method, which evaluates currencies in relation to the average daily wage, Hungary might also justify introducing new denominations. According to the Hungarian Central Statistical Office (KSH), the net average wage in mid-2025 was nearly HUF 484,000 (EUR 1,232), or roughly HUF 22,000 per day. Applying this formula:

• the largest banknote should be around 100,000 forints,
• the smallest banknote should be 1,000 or 2,000 forints,
• and the largest coin could reasonably be 500 forints.