Spontaneous euroisation continues in Hungary, expert says EUR 1 will cost HUF 500 soon
The Orbán cabinet regularly voices that they would not like to introduce the euro in Hungary until the country’s economy does not meet multiple conditions. However, the significant drops in the Hungarian national currency’s exchange rate resulted in spontaneous euroisation in multiple areas of life in Hungary, including property and car purchases. It seems the trend will continue.
Forint is underperforming
Multiple surveys show that Hungarians stick to their national currency more than other European nations. For example, in Romania, people regularly calculate in foreign currencies when they buy property or high-value goods like apartment renovation or cars. In Hungary, such ads would have been strange a couple of years ago when the forint was stronger. Now, they are no longer odd.
The forint was introduced after Hungary’s pengő experienced the highest inflation in world history following the devastation caused by the Soviet and German armies fighting a deadly battle in Hungary between September 1944 and April 1945. Hungarians liked forint, and the new national currency proved to be a trustworthy means of wealth creation for decades. That changed after the robust inflation and forint weakening that started in H2 2022.
We wrote yesterday that the forint is underperforming compared to other regional currencies. Moreover, it reached historic lows against the American dollar, the Swiss franc, the pound sterling, and even the Polish zloty. Currently, we have to pay more than HUF 411 for one euro. The historical high was almost 424 in November 2022 when the Hungarian National Bank (MNB) intervened and raised the base rate sky-high to protect the forint. Now, they are not expected to do so. Moreover, MNB governor György Matolcsy’s mandate will end next March, so he will probably not carry out fundamental changes in the MNB’s FX policies.
Hungarian forint struggling against a powerful US dollar
Meanwhile, the forint’s weakening is unstoppable. Last June, it was at 362/EUR. Then, a new depreciation trend started, which does not seem to end, primarily due to Trump’s victory in the United States, strengthening the dollar and weakening all emerging currencies, including the forint. Furthermore, Hungarian media regularly reports that the Orbán cabinet is not interested in a powerful national currency because a weak forint helps their export-increasing plans.
As a result, it is not surprising that spontaneous euroisation started in Hungary in the past few years. Péter Virovácz, a senior analyst of ING, told Cash Tag that sooner or later, we would exceed the HUF 500/EUR 1 currency exchange level. Therefore, the question is when the Hungarians will spontaneously introduce the euro.
Spontaneous euroisation in multiple sectors of the economy
Mr Virovácz said that in the case of multiple commodities, prices are already provided in euros. One example is car purchase. Of course, you can pay in forints for your car, but its sum will depend on the exchange rate, varying frequently.
A similar trend is perceptible in the construction industry. If you ask for a price calculation concerning some kind of development in your home, you may get the price in euros.
In the Hungarian property market, the changes may mean millions of forints. For example, a 90 m2 luxury apartment cost HUF 376 million before. Now, it is HUF 402 million. The reason is that you have to pay in euros for it, and that price remains unchanged: EUR 978 thousand.
The question is how long Hungarians will tolerate this trend. In 2026, general elections will be held in Hungary and PM Orbán has a challenger, Péter Magyar, the head of the Tisza Party and the ex-husband of former Justice Minister Judit Varga. If the Orbán cabinet becomes unable to deal with economic difficulties, Mr Magyar has a chance to win in 2026.
Read also:
- The European Commission cools PM Orbán’s optimism about Hungary’s 2025 GDP growth – read more HERE
- Shocking: Stunning rise in Hungary’s housing prices outpaces all of Europe
heck. looks like no one wants the Hungarian Forint, not even the hungarians!
This was an informative article. Those special 50,000 forint coins being minted will eventually be useful for vending machines. All those pay raises Orban is promising for Hungarians are just a mirage that will disappear with devaluation of the forint. When your currency is grossly devalued it is a by-product of economic failure and mismanagement. Hungarians would be complete fools to continue to tolerate this and reelect Fidesz in 2026.
“If the Orban cabinet becomes unable to deal with economic difficulties.” – passive summary.
FACT, the creators of the “Cusp” that economically & financially we are at, “hinging” on a cataclysmic COLLAPSE, of our Economy – taken there -DELIVERED there – by the economic and financial INCOMPETENCE of the Orban led Fidesz Government, muchly from the “desk” of the Minister of Finance – Mihaly Varga, that grows in absolute disrespect for his Ineptitude in-side Hungary and the European Union – Hideous.
We, as a country progress deeper into a HOLE, the depth – the “nadir” of the Orban / Varga that the Fidesz Government have “Plunged” us, personally, as a Family – our quality of life, and the Hungarian operators of Businesses, be that largish or small, in all forms of operation, that there lives, the lives of there Family, is geared into – as there course of living – there quality of life and those they employ.
Quality of Life – personally, after 16 years under the “ill fated” – Orban led Fidesz Government of Hungary – what is YOUR personal assessment – you, your “Quality of Life” – the responsibilities you HAVE – family, remembering, that as our children grow and develop they DON’T – get cheaper in parental responsibility, what is YOUR position now, and in the FUTURE ???
How do you PICTURE your Future ?
How are the PLANS you PICTURED – either put in place happening or PLANS that are in your “Vision” of your FUTURE – what is the – your “present” evaluation – your LIFE is in placed ???
These, this category of personal “Self Assessment” questions – serious time, devoted time NEEDS by all Hungarians, to get OFF there mobiles or whatever, and DEVOTE time – prioritize to FIND time – then penetrate EXHAUST – your Thinking capabilities and then in your self assessment – mark yourself, on simple a scale of 1 to 10 – how you are TRAVELLING.
Hungary – bought on by the FAILINGS “broadsheet” of this Orban led Fidesz Government, in the 16 years, they have been a Government, a government of absolute SELFISHNESS – not for the citizens people of Hungary, the country FIRST, but what’s in it for THEM as a government and THEM personally – that is PERSONIFIED being as clear as DAYLIGHT, from what they HAVE delivered us to as a country in Economic and Financial – Free Fall – and that we, the citizens in our millions, from “all stations in life” – have always been placed SECOND.
Orban, his SELFISH – his FAILED Fidesz Government have never, never, never and will never Govern to PRIORITISE to the following two “Creeds” as a Government ASK, and Govern practice in asking in this order ;
(1) – what’s BEST for ALL Hungarians.
and secondly,
(2) what’s BEST for Hungary.
The “free fall” trend of the Forint, it’s on-going EROSION of Value of WORTH – it WILL continue to TUMBLE – uncontrollable.
Ramifications we know already through the SOFTNESS – out of favour” of no attraction, given to the forint, the pressure in our SINKING economy – it has caused.
Hungarians have and will continue to pay a HEAFTY price for the forint – Free Fall, its devaluation.
The forint worsens, as the state of the Economy tumbles goes DEEPER into CHAOS turmoil, through the Policies of the “doomed” – the FAILED Government of Orban and his Fidesz Government, over 16 years, that the gargantuan PRESSURIZATION on Orban and his Fidesz Government, they are at a point in time that see’s them absolutely INCAPACITATED – powerless – to STOP the “free fall” – the Financial & Economic – Collapse.
The Deby of the Orban – Fidesz Government both in borrowings from China and Russia and FINES, the debt it is – to all tax paying Hungarians – the “Wreckage” this is causing and will worsen its impact on the “twin “problems associated to the word DISINTEGRATION being its Economic FAILINGS and of Social Disintegration.
NOTHING can STOP – the growing IMPLODING of Hungary.
The growing PRESSURIZATION from internally – inside of Hungary and the Strength, the Might & Power of external PRESSURES exclude Orban, his “Gofer” role to China & Russia, that will grow from countrys of DEMOCRACY just not the “other” 26 member country’s of the European Union, that WILL rightfully deepen the HUMILIATION – through EXPANDING by disclosure and exhibiting FACT’S – that are of TRUTH – the abuse, the disrespect, the selfishness, there “Heinous” and “Toxic” culture, the Orban led Fidesz Government, that continues under Orban, the DISTILLATION of DEMOCRACY, moving us – we are there NOW – into a Dictatorship under Laws/the Rule of Communism, in this Orban led Fidesz Government of Hungary, that in 16 years have SMASHED us as a country, that has removed POWERFULLY in great part being the Heart & Soul – of Hungary, that we NOW, our FUTURE lies left in a state of GRAVE un-certainty.
Crestfallen.
This is why my company invoices in Euros … And has, for a while.