Shortly, digital currencies could reshape global financial systems, with the digital euro expected by November 2025. Meanwhile, the Hungarian Central Bank (MNB) is exploring the potential of a digital forint for wide-scale use, currently in a test phase for youth aged 8–14 since March of last year.
Digital forint in testing phase
The “Student Safe” (Diákszéf) mobile app, available nationwide since May last year, allows young people to manage digital forint transactions within the app, explained Anikó Szombati, head of MNB’s digital and fintech development, during the “Digital Hungary” event hosted by the Oeconomus Economic Research Foundation, Index reports. The MNB began researching digital central bank currencies around 2020 and published a study on the topic in 2021.
The MNB is exploring the potential of a digital forint for wide-scale use. Photo: depositphotos.com
While many central banks are examining digital currencies, most do so at a theoretical level. The MNB, however, has opted to practically test a local digital currency, with a focus on educating young users about responsible money management and digital payments. The goal is to develop a user-friendly and competitive app for digital currency transactions, potentially rivalling both traditional banks and major fintech players like Revolut.
Why digital currencies?
Central banks generally consider digital currencies for two primary reasons:
Market gaps – to address banking and fintech access issues in countries with limited financial services.
Strategic sovereignty – in the eurozone, for instance, the digital euro would help secure monetary independence from foreign digital currencies and major card companies, like Visa and Mastercard, which currently hold near-monopoly status in Europe.
A digital currency could also serve as a free payment tool for those in need. MNB’s digital currency rollout could make account services and transactions more affordable for households and businesses alike.
Digital currency a way to restore state control
Economist Zoltán Pogátsa noted that a central bank digital currency is not just a technological advancement but a way to restore state control over the currency. “Having a central bank digital currency essentially reclaims control over money for the state,” he remarked, explaining that most money in circulation today is issued through commercial bank lending, beyond effective state oversight.
The rise of “super apps” is also anticipated. According to György Mudri, CEO of FintechX Technologies, these apps will manage people’s lives beyond just banking, allowing financial transactions through integrated platforms.
Experts agreed that while cash usage will likely decline gradually, its complete disappearance is not yet feasible, nor is it an immediate goal for the central bank. Currently, 60% of transactions in Hungary are still cash-based, according to Zsolt Selmeczi, CEO of GIRO Plc. However, Pogátsa believes a cashless society should be encouraged, suggesting that in 30–40 years, the idea of carrying coins for payment will seem quaint.
By 2030, the MNB aims to reduce the proportion of cash transactions in Hungary to below 30%.
This week, the forint has weakened against the euro by over four units, primarily influenced by disappointing GDP data. The domestic currency opened the day at a level not seen since late 2022 and then dipped even lower during the morning hours. Against the British pound and the Swiss franc, the forint is at its weakest in over two years.
The forint is weakening uncontrollably
On Thursday morning, the forint opened above HUF 408 per euro, according to Portfolio. While the situation on the foreign exchange market does not indicate panic, the forint is experiencing a gradual decline. Investors betting on the currency’s depreciation are increasingly active, sensing no significant factors to support a strengthening of the Hungarian currency.
Today is expected to be quieter in the foreign exchange market compared to yesterday, which saw significant movements due to global GDP data. However, the Hungarian figures were disappointing.
Should panic develop, it could lead to dramatic sell-offs, Index reports. Dániel Molnár, chief analyst at the Makronóm Institute, noted that if panic arises, it could trigger a wave of selling and rapid depreciation. While the currency’s weakening trend did not start this week, Wednesday’s GDP data highlighted the potential for intervention from the Hungarian National Bank (NBH).
Despite efforts by National Economy Minister Márton Nagy to manage market expectations regarding the poor GDP figures, the forint took a hit as economic performance declined by 0.7% compared to the previous quarter and the same period last year.
The forint did strengthen slightly against the euro, reaching HUF 406.44, but this did not last long, as Thursday saw the euro rise above HUF 409 again.
According to Molnár, the Hungarian currency’s persistent weakness is due to international developments, the escalation of conflicts in the Middle East, and rising global natural gas prices. The GDP data dealt a significant blow, bringing the forint to levels last seen in autumn 2022.
Molnár emphasised that it is difficult to pinpoint a psychological threshold for the Hungarian currency’s value, as these are usually based on historical patterns. Significant depreciation could have inflationary effects through import prices and erode trust in forint assets, which could only be curbed by higher interest rates. In the event of further depreciation, NBH intervention is likely.
The weakening trend began around the end of September, influenced by rising interest rate expectations from the Fed and the market’s pricing in a potential interest rate reduction cycle from the ECB. The escalation of Middle Eastern conflicts has also adversely affected emerging market currencies. These combined factors have been sufficient to weaken the forint beyond the psychological barrier of HUF 400.
The Hungarian forint has taken a new hit, falling to a record low against the euro following the release of disappointing GDP data. The data paints a bleak picture of Hungary’s economy, showing a slowdown that has once again tipped the nation into a technical recession. According to reports from Portfolio.hu, the euro reached HUF 405.8 by 9 AM today, a level unseen since November 2022.
The latest currency drop follows an overnight spike, where the euro-forint exchange briefly surged to 405.7, setting a fresh low not experienced since January 2023, Portfolio reports. The downturn in the forint coincides with the announcement of Hungary’s third-quarter GDP figures, which revealed an economic contraction and an official return to technical recession status. Analysts are bracing for further fluctuations as additional data from the EU and the U.S. are set to be released, likely impacting market dynamics. For instance, Spanish economic data already spurred a rise in the euro, which in turn saw the forint gain slightly against the dollar.
Shocking GDP data signals technical recession for Hungary
Data from Hungary’s Central Statistical Office confirmed a 0.7% quarterly drop in GDP during Q3, a contraction much steeper than experts had predicted. Forecasts collected by Portfoliosuggested only a minor dip of 0.2%.
However, the reality proved far worse, as Hungary’s economy has now experienced back-to-back quarters of decline, putting it squarely back in a technical recession.
On an annual basis, GDP shrank by 0.7% after seasonal and calendar adjustments, and the raw data showed a larger 0.8% decline. For comparison, analysts had expected a modest growth of around 0.3%.
The last time Hungary faced such economic difficulties was during the energy crisis of late 2022. Since then, GDP growth has been inconsistent, with the economy shrinking in six out of the last nine quarters.
Economic Development Minister Márton Nagy had hinted at the likelihood of this downturn, suggesting during the Budapest Economic Forum that third-quarter growth would hover close to zero. This statement from the minister implied an anticipated economic decline compared to the previous quarter, leading market forecasts to be adjusted downwards.
However, today’s release still managed to shock investors, triggering a further plunge for the forint.
Market reactions and fluctuations
Following the release of GDP figures, the forint experienced a sharp decline against the euro, reaching a low point of 405.8, marking a level not seen since late 2022. Amidst the broader landscape of European economic updates, fluctuations in the currency market were noticeable. For instance, Spain’s strong economic performance, along with an unexpected inflation increase in October, bolstered the euro. France also reported better-than-expected GDP figures, prompting optimism around a potential economic recovery in Europe. With the European economy showing signs of life, the European Central Bank may delay interest rate cuts, which could strengthen the euro further against the dollar.
These developments have caused the forint to strengthen slightly against the dollar, with a 0.2% rise bringing the exchange rate to below 374 HUF/USD. However, the forint’s position against the euro remains largely unchanged, reflecting investor caution due to Hungary’s weak economic outlook.
The Hungarian forint has plunged to its weakest rate against the euro since December 2022, sparking concern among economists. Experts attribute this downturn largely to international factors, including a volatile geopolitical environment, but domestic policies also play a part. The future of the forint may depend heavily on the release of EU funds, though there remains uncertainty about their arrival.
Sharp decline in the forint
The week started poorly for the forint, with the currency hitting a four-month low against the dollar and sliding to HUF 404 per euro by the weekend—the weakest level in nearly two years. Csaba Szajlai, an analyst at Világgazdaság, pointed out in an interview with ATV News that the upcoming U.S. presidential election could influence the euro-forint exchange rate, with a possible Donald Trump victory expected to weaken the euro, while a win by another candidate might stabilise it.
Economist Csaba Lentner sees Hungary’s ongoing financial struggles with the EU as a primary factor in the forint’s decline, along with the Hungarian National Bank’s current losses totalling around HUF 3,000 billion (EUR 7.40 billion). Lentner believes that Hungary’s absence of EU funding is adding pressure to the currency, stating that the weak Hungarian currency could test the resilience of the economy, especially as the 2026 elections approach. Given the current economic climate, he suggests that the forint could fall as low as HUF 430 per euro.
Trust issues at play
Opposition MP Zoltán Vajda of the MSZP party argues that the Hungarian currency’s persistent decline has deep roots, noting that since 2010, the currency has lost nearly 50% of its value against the euro. According to Vajda, government actions have eroded investor confidence, worsening the currency’s situation. He added that if Hungary had already adopted the euro, people would no longer need to worry about the forint’s day-to-day volatility.
While both global events and government financial policy are weighing on the currency, experts caution that only short-term measures might bring any stabilisation. In the long term, however, a more substantial recovery for the Hungarian currency remains uncertain.
UPDATE: EUR/HUF exchange rate reaches 405
The forint fell to a new low on the second day of the week, hitting 405.231 on Tuesday at around noon, Economx reported. It then went back below 405 then reached that level again after 2 PM.
We have reported earlies that this week was not the heyday of the Hungarian forint. It happened before that the exchange rate increased above 400/EUR, but did not remain there permanently. Now, it seems the forint broke an important currency exchange level, and experts believe it can reach 410/EUR soon.
Hungarian forint broke exchange rate level
According to Index, external reasons like the price rise of gas resulted in a 10% weakening in the currency exchange rate of the Hungarian forint. Our currency was weaker against the euro in December 2022 and against the dollar in October 2023. On Saturday, Israel carried out attacks against Iran, which will probably make the situation worse. Currently, the exchange rate stands above 404/EUR.
Dániel Molnár, a senior analyst at Makronóm Institute, said the international atmosphere was the key reason behind the fall. The US dollar strengthened against the euro, which resulted in the weakening of the forint and the Czech koruna. Furthermore, the Hungarian National Bank did not increase the base interest rate on Tuesday. The MNB is in a reduction program but postponed base interest rate decrease for months, so the MNB did what it could to halt the negative trend.
György Matolcsy, the governor of the Hungarian National Bank. He will only intervene if a catastrophe happens. Photo: FB/MNB
The increasing probability of Trump’s success was also bad news for the forint since the American dollar is expected to strengthen due to the higher tariffs Trump promises. We covered the disadvantageous consequences of Trump’s victory on the Hungarian economy in THISarticle yesterday.
More disturbing news may emerge
According to Index, the forint changed its currency exchange level and is expected to remain in the 400-410/EUR range. Meanwhile, the US dollar will be in the 365-375 domain, Zoltán Varga, an analyst of Equilor Befektetési Ltd, said. Mr Varga added that the higher jobless rate the KSH shared on Friday was also disadvantageous for the forint.
Next week, multiple Hungarian and international economic data will emerge affecting the forint. For example, the Q3 Hungarian GDP growth data, the GDP increase of Germany, the USA and the Eurozone, the number of American employees employed in the private sector, the German inflation, the Japanese base interest rate, the Eurozone inflation data, etc.
S+P Global Ratings affirmed its ‘BBB-/A-3’ long- and short-term foreign and local currency sovereign credit ratings on Hungary in a scheduled review on Friday. The outlook is stable. In a statement released late Friday, the National Economy Ministry attributed the high degree of confidence in Hungary in the reports of all three big credit rating agencies to the stability and resilience of the economy. However, that news did not help the Hungarian forint. On Friday, when the news emerged, the exchange rate was below 404, now it is above.
New tendency: Hungarians keep their savings in euro
According to economx.hu, it is understandable why many Hungarians decide to keep their money in euros instead of forints. Apart from the psychological effect of seeing the 400/EUR exchange rate, the Orbán cabinet plans significant money transfers for the voters before the 2026 general elections. Furthermore, most EU funds are still unavailable for Hungary, and it does not seem the Hungarian government will agree with the European Commission and settle the controversial issues soon.
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Orbán cabinet introducesstricter rules on guest worker employment
S&P is set to announce Hungary’s credit rating late tonight, a decision that could exacerbate the downward trend of the forint. On 23 October, the Hungarian currency reached a 22-month low against the euro, a position it has struggled to recover from since. The last time the forint was this weak was back in January 2023.
Could Trump’s defeat aid the forint?
The forint has proven vulnerable to external shocks, with recent pressures arising partly from the U.S. presidential election campaign, according to portfolio.hu. The campaign’s impact on emerging markets has put additional pressure on the currency, but interestingly, a Democratic victory could potentially ease this strain on the forint.
Interestingly, a Democratic victory in Washington could help the forint recover from its current downturn. However, the Hungarian government has placed all its bets on a Trump victory. Prime Minister Orbán and his cabinet hope that a Trump presidency could alleviate the pressure from some Western powers on Hungary regarding the war in Ukraine and the illegal migration crisis. Orbán frequently asserts that Trump would bring peace to Ukraine, which would help the Hungarian economy flourish once again.
On the other hand, the Hungarian PM rarely mentions Trump’s anti-China policies, which could lead to clashes between Budapest and Washington. The Hungarian government is actively working to establish, maintain, and expand its relations with China in various areas, including education, the economy, railway upgrades, and even financing Hungary’s growing debt.
Viktor Orbán and Chinese President Xi Jinping. Photo: FB/Orbán
Conversely, a Republican victory in both Congress and the White House could lead to a stronger U.S. dollar, presenting new challenges for the Hungarian currency.
Can the Hungarian National Bank (MNB) stabilise the forint?
The Hungarian National Bank has pledged to keep the base interest rate steady for at least the next three months in an effort to support the Hungarian currency. Portfolio.hu suggests that further intervention from the MNB may only occur if the forint weakens uncontrollably. Some analysts predict the forint could strengthen to around 400/EUR by year-end, but a sustained softening is anticipated for 2025, with the exchange rate likely remaining above this threshold.
György Matolcsy, the governor of the Hungarian National Bank. His term will end in early-2025. Photo: FB/MNB
The forint’s decline is partly due to Hungary’s sluggish GDP growth and ongoing delays in receiving EU funds. Poland’s zloty, though also under pressure, has held steadier due to Poland’s stronger growth and EU financial support.
Will S&P retain Hungary’s investment-grade status?
According to Portfolio.hu, S&P is likely to maintain Hungary’s investment-grade rating with a stable outlook, following a similar move by Japan’s R&I on 22 October.
The forint traded at 404.22 to the euro around 10:00 on Friday morning, weakening from 402.78 late on Thursday. The current exchange rate stands at 403.75. The forint also eased to 373.50 from 372.92 against the dollar and slipped to 431.24 from 430.31 against the Swiss franc.
In June, all three major credit rating agencies—Fitch, Moody’s, and Scope Ratings—maintained Hungary’s position in the investment grade category.
Photo: Daily News Hungary
UPDATE: Euro above 404
The forint traded at 404.08 to the euro around 5:30 in the evening on Friday, slipping from 402.78 late Thursday. The forint eased to 373.44 from 372.92 against the dollar. It weakened to 431.12 from 430.31 to the Swiss franc.
UPDATE 2: S&P decision and reactions
S+P Global Ratings affirmed its ‘BBB-/A-3’ long- and short-term foreign and local currency sovereign credit ratings on Hungary in a scheduled review on Friday. The outlook is stable. However, the positive news did not help the forint. On Saturday morning, the exchange rate is still 403.92/EUR.
“The stable outlook reflects our expectation that Hungary’s economic recovery, ongoing disinflation, and stabilising cost of debt will support the government’s fiscal consolidation efforts in the medium term, allowing the government’s debt burden…to stabilise,” the rating agency said.
S+P sees Hungary’s fiscal deficits narrowing from 2025 and averaging 3.7pc of GDP through 2027, taking into consideration strengthening economic prospects and active consolidation measures totaling about 1.3pc of GDP for 2024.
S+P expects Hungary’s state debt ratio to reach 74.6pc of GDP in 2024 and projects interest spending to represent 9pc of government revenue on average over 2025-2027.
S+P’s baseline expectation is for inflation to continue to subside and the current account to remain in modest surpluses, allowing the National Bank of Hungary to cautiously normalise monetary policy.
S+P puts GDP growth at 1.6pc in 2024, before accelerating to around 3.0pc in 2025 as investment growth and external demand recover, alongside “enduring private consumption”.
S+P said the growth outlook remained “somewhat uncertain” as the country’s open and trade-intensive economy remained susceptible to external developments, including growth performance in Germany, Hungary’s key trading partner, as well as any spill-over effects from geopolitical tensions on energy or other key import prices.
Hungary’s constrained relations with the EU could also lead to delayed disbursement of associated funding, it added.
Hungary has access to a total of EUR 12.2bn of cohesion funds for the EU’s 2021-2027 funding cycle.
FDI as a share of total investments is expected to pick up on big projects in the electric vehicle sector, S+P said.
In a statement released late Friday, the National Economy Ministry attributed the high degree of confidence in Hungary in the reports of all three big credit rating agencies to the stability and resilience of the economy.
The economy is growing faster than the European Union average and beating economic performance in Belgium, France, Italy, the Netherlands, Romania, Latvia and even Germany, the ministry said.
Hungary has moved past a difficult period and positive signs point to an economic turnaround, it added.
GDP growth is expected to reach 1.5pc in 2024, the ministry said, pointing to improving retail sales and tourism data, indicating growing consumption. The recovery of the domestic economy is supported by high employment, a dynamic increase in real wages and low inflation, it added.
The government aims to boost GDP growth to 3-6pc, adopting a policy of economic neutrality and rolling out a new economic policy action plan that aims to boost purchasing power, ensure affordable housing and upscale SMEs, the ministry said.
The 21 measures could lift GDP growth over 3pc in Q1 2025, it added.
In a post on social media late Friday, Finance Minister Mihaly Varga noted that Hungary’s sovereign rating had been reviewed by credit rating agencies close to 20 times since the outbreak of the war in Ukraine. Each time the agencies have established that the economy is resilient and the conditions for growth are in place, putting Hungary in the investment grade category, he added.
Hungary’s economy is returning to the path of sustained growth it was on before the pandemic, he said.
Read also:
Forint plummets to over 403 against euro, hitting 2-year low – read more HERE
Hungary’s minimum wage could realistically reach EUR 1,000 by 2028, saysemployment secretary
Sándor Czomba, the state secretary for employment policy, said there was a “realistic chance” for the minimum wage to reach EUR 1,000/month and the average gross wage to climb to HUF 1 million/month by 2028, speaking on public television on Thursday.
Czomba told news channel M1 that the targets could be reached if GDP growth accelerated and inflation stayed predictably low. He added that talks between the government, employers, and unions about next year’s minimum wage increase and wage developments for the coming three years were continuing.
The government aims to raise the minimum wage to 50pc of the level of the average wage, excluding bonuses, in 2027, he said. That would bring the minimum wage to HUF 370,000-375,000/month, according to calculations at present, he added.
Achieving that level would require annual increases of 12pc, although the exact scale of the rise would depend on GDP growth, he said, adding that consensus between the sides had been reached on that point.
The government expects GDP to grow 3-4pc in 2025 and 4-5pc in 2026, he said.
On Wednesday afternoon, the Hungarian forint dropped to over 403 against the euro, marking its weakest level since September 2022 as the currency continued to decline on international markets. The forint is also struggling against the US dollar, hitting similar lows.
Hungarian forint plummets to two-year low
Although the forint saw slight gains in the morning, it began to weaken by midday, with the situation worsening in the afternoon. By 6:45 PM, the exchange rate had dropped to 403.29 forints per euro.
According to Portfolio, trading on the Hungarian stock exchange was halted due to the 23 October national holiday, making the currency more vulnerable to fluctuations.
Just two weeks ago, the forint had also surpassed the 402 mark, hitting a rate of 402.23 against the euro.
The forint crossed the 400 threshold on 4 October for the first time in six months, following a decline that began on 2 October as a reaction to the conflict in the Middle East.
The Monetary Council of the National Bank of Hungary (NBH) decided to leave the central bank base unchanged at 6.50pc at a monthly policy meeting on Tuesday.
At the previous policy meeting, in September, the Council had cut the rate by 25bp. The Council also left the O/N deposit rate at 5.50pc and the O/N collateralised loan rate at 7.50pc. The rates mark the ends of the central bank’s symmetric interest rate corridor. In a statement released after the meeting, the Council said the domestic inflation outlook was consistent with the projection in the NBH’s latest quarterly Inflation Report, published in September, but pointed to an increase in upside risks to inflation on the back of deteriorating international investor sentiment and volatile commodity prices.
“Re-intensifying geopolitical tensions, volatile financial market developments and the risks to the outlook for inflation warrant a pause in cutting interest rates,” the policy makers said. “The external interest rate environment may ease more slowly than previously expected, while the expected interest rate paths of the world’s leading central banks are still surrounded by uncertainty,” they added. Looking ahead, the Council said a “careful and patient approach” to monetary policy was still warranted and decisions on the base rate would be taken in a “cautious and data-driven manner”.
Forint strengthens after the decision
The decision of the Monetary Council did not come as a surprise: after the words of Barnabás Virág, Vice President in charge of Monetary Policy, it was certain that interest rates would be kept on hold, Portfolio writes. Nevertheless, the forint reacted to the announcement by strengthening to around 400/EUR.
The Hungarian forint is at a 4-month low against the American dollar. The exchange rate stands around 370/USD these days. The last time it was that high was in June. What can we expect? Will the euro continue to strengthen as well?
Hungarian forint struggling against euro, dollar
The Hungarian forint started a weakening period again in the last few weeks. The EUR/HUF currency exchange rate is slowly but unstoppably climbing again. Even though the EU’s official currency was at a one-year low on 26 May at 384.39/EUR, it is above 400/EUR again, and it seems we have to get used to that exchange rate. The forint has been around 400 since the beginning of this month.
The trend is the same concerning the American dollar. Despite being at a 6-month low in August and September, the American currency reached a 4-month high in October with HUF 368-370/USD. The American dollar peaked in June and April, with exchange rates above 370/USD. In January, we only had to pay HUF 344.7 for a dollar.
Forint-USD. Photo: PrtScr/Google
Forint-euro. Photo: PrtScr/Google
According to the MTI, the forint traded at 400.05 to the euro around 10:00 in the morning on Friday, little changed from its rate of 400.23 late Thursday. The forint edged up to 369.07 from 369.33 against the dollar. It firmed to 425.81 from 427.10 to the Swiss franc.
Hungary’s risk remains high
Barnabás Virág, the deputy governor of the Hungarian National Bank, said at the annual conference of Portfolio yesterday that the American economy was in unexpectedly good shape. Therefore, the FED can introduce a moderate interest rate reduction course. The result is a strengthening dollar against the euro, which is bad news for emerging currencies like the forint.
Meanwhile, Hungary’s risk margin increased compared to the second half of the 2010s. Our risk margin is higher by 140 base points than it was then. Risk evasion from investors is strengthening, and geopolitical conflicts are escalating, which is not good news for emerging markets like Hungary because investors move their money to the safest currency in the world, the American dollar. If the USA gets involved in one of the conflicts, the EUR/HUF exchange rate can easily exceed the 410 level, hvg.hu wrote.
Will the weakening of the forint continue? Photo: Pexels
Sometimes even a well-formed sentence is enough
Mr Virág added that the Hungarian National Bank might keep its base interest rate decrease programme halted even after October. That statement helped the forint to strengthen from 402/EUR to 400/EUR.
The forint is in bad shape even compared to regional currencies
HVG tried to explain why the forint has lost so much of its value compared to other regional currencies (Polish zloty, Czech koruna, etc.) since 2004. They shared two shocking pieces of data as an introduction. When Hungary joined the European Union (1 May 2004), we had to pay HUF 250 for one euro. Currently, that exchange rate is 400, which means it lost 60% of its value.
Meanwhile, Czechia’s koruna strengthened. In 2004, they paid 32 koruna for one euro. Now, the exchange rate is only 25.3. Comparing the Hungarian currency with the koruna is even more shocking. In May 2004, a Czech koruna cost 7.74 forint, while now we have to pay 15.86. That is a more than 100% weakening.
High state debt, Orbán’s supermajorities, huge state investments
One of the reasons is the high Hungarian state debt and the fact that 30% of it is in foreign currency. If the forint weakens, our state debt grows instantly. For example, compared to H2 2023, the Hungarian state debt grew by HUF 504.1 billion in H1 2024.
Another reason is the government’s already announced pre-election money transfers. In 2022, the Orbán cabinet generated Europe’s biggest inflation by distributing thousands of billions of forint, gaining the fourth consecutive supermajority. Péter Magyar’s Tisza Party is just 2% behind Fidesz. Therefore, the Orbán government may prepare an even more significant money transfer before the elections in 2026.
Investing in Hungary is even higher because of the huge investments of the Orbán regime, like buying Budapest Airport or building the Belgrade-Budapest railway line.
New budget only after US presidential elections
The Hungarian government regularly says the weak forint boosts the exports and the economy. However, HVG argues that its disadvantages are far greater than its advantages.
The Orbán government places the country’s diplomatic and economic future in Trump’s victory in the November presidential election. For example, the government will only submit the 2025 budget after the election. In the last 14 years, annual budget bills were always submitted the previous May. That meant, of course, that the government regularly amended the budget since the 2025 budget accepted by the parliament e.g. in May 2014 needed several modifications in the next year.
Hungary’s future is highly dependent on Trump’s victory in November. Photo: FB/Orbán
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Good news from the Hungarian economy: National Bank prepared to protect the Forint, inflation likely to fall – read more HERE
Hungarian central bank launches new 200-forint coin alongside commemorative coins – PHOTOS and details HERE
When the Hungarian forint began losing value in 2022, the Hungarian National Bank (MNB) intervened by significantly raising the base interest rate to protect the national currency. Since then, the Bank has been gradually lowering the base rate to help revive the economy’s struggling engine. However, global developments may once again necessitate action to defend the forint, and it appears the Bank is ready to do so.
Hungarian National Bank poised to defend the Forint
According to portfolio.hu, the Hungarian National Bank may adopt a more cautious approach to its next base rate decision, expected in October. This caution is partly due to global uncertainties, such as the upcoming US presidential election and ongoing geopolitical conflicts.
Barnabás Virág, a Deputy Governor of the Hungarian National Bank, elaborated on this during a presentation for investors. He explained that the Bank’s capacity for manoeuvre with regard to lowering the base rate in October is becoming more limited. Key factors influencing the Bank’s decision include inflation in Hungary, regional economic performance, and the global risk environment.
György Matolcsy, the governor of the Hungarian National Bank. Photo: FB/MNB
The situation in the Middle East has escalated, China has unveiled measures to stimulate its economy, and the United States has reported stronger-than-expected economic data. These factors have increased the risk of higher inflation, while geopolitical uncertainties have already driven the forint above the 400/EUR level. As a result, the Bank’s more cautious stance is understandable.
Hungarian government aims for economic growth
As Hungary moves into the campaign period for the 2026 general election, government officials, including Prime Minister Viktor Orbán, have been emphasising the need for economic growth, rising wages, and increased investment. This would require an injection of capital into the economy. However, despite foreign investment, domestic consumption has not risen as the government had anticipated.
Source: depositphotos.com
Due to the high base interest rate, many Hungarians have opted to keep their savings in banks or even abroad. While the government would like to reduce interest rates to stimulate consumption and boost growth, lowering rates too far could make the forint even more volatile. With numerous global and regional uncertainties at play, the exchange rate could easily rise, leading to soaring inflation—a vicious cycle that would be difficult to break.
Inflation may fall this autumn and winter
Analysts consulted by portfolio.hu believe that inflation continued to decline in September, with the median inflation rate likely to be around 3%. Fresh data on the subject is expected to be released tomorrow. If these predictions are correct, it would mark the first time in 3.5 years that inflation in Hungary has fallen below 3%. The last time inflation was below this level was in January 2021, indicating that Hungary’s inflationary pressures began to mount well before the war in Ukraine.
In December, analysts expect the Hungarian Central Statistical Office (KSH) to report a year-on-year inflation rate of 4.5%, lower than the previously forecast 5%. However, portfolio.hu noted that inflation in December 2025 may end up higher than currently expected. For 2024, yearly inflation is projected to be around 3.8%.
UPDATE: Policy makers acknowledged factors allowing ‘careful’ rate reduction at September meeting
National Bank of Hungary (NBH) rate-setters agreed that continuing disinflation, a looser external monetary policy environment, the country’s improved risk perception, and a gradual improvement in confidence among economic players allowed a “careful” reduction in the base rate at a policy meeting in September, but still argued “in general” for maintaining a restrictive policy stance, the minutes from the meeting released on Wednesday show. The NBH’s Monetary Council voted unanimously at the meeting on September 24 to cut the base rate by 25bp to 6.50pc, after weighing an option to keep the base rate on hold, too.
“The Council considered these options primarily based on the outlook for inflation, economic agents’ precaution and changes in the external monetary policy and risk environment,” reaching a consensus that disinflation was expected to continue over the monetary policy horizon, while pointing to a “somewhat looser” external monetary policy environment, a “slight” improvement in the country’s risk perception and the gradual recovery of confidence among economic agents, according to the minutes. “In the Council’s assessment, all these factors allowed a careful reduction in interest rates. However, members in general argued for maintaining a restrictive monetary policy stance and preserving financial market stability,” the minutes show.
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Hungarian central bank launches new 200-forint coin alongside commemorative coins – PHOTOS and more in THISarticle
Experts worriedthat PM Orbán’s brutal wage rise would bring inflation and a HUF 500/EUR exchange rate
The National Bank of Hungary (Magyar Nemzeti Bank, MNB) has announced the release of new commemorative coins, including a redesigned version of the circulating 200-forint coin. Two other commemorative coins with face values of HUF 30,000 (EUR 75) and HUF 7,500 (EUR 19) will also be introduced, each honouring the martyrs of Arad.
Commemorative coins honouring the martyrs of Arad
On 6 October, which marks the memorial day of the martyrs of Arad, the MNB will issue a large, 30,000-forint silver coin with a 13-sided inner rim, along with a 7,500-forint version made from non-ferrous metals, Világgazdaság reports. These coins are being released to commemorate the 175th anniversary of the execution of the martyrs who sacrificed their lives for Hungarian independence.
In addition to the commemorative coins, a special edition of the 200-forint coin will also be issued in honour of Lajos Batthyány, Hungary’s first constitutional prime minister. One million copies of this unique 200-forint coin will be put into circulation, while the silver commemorative coins will be produced in a limited run of 6,000 pieces, and the non-ferrous metal versions in 8,000 pieces. The commemorative designs were created by coin artist István Kósa, while sculptor Zoltán Kovács crafted the redesigned side of the 200-forint coin.
175 years ago, on 6 October 1849, 13 Hungarian military officers were executed in Arad due to their role in the 1848-1849 War of Independence. In remembrance of the 175th anniversary of their execution, as well as that of Lajos Batthyány, MNBwill issue a commemorative edition of the 200-forint coin, a large, 30,000-forint silver coin with a 13-sided inner rim, and a 7,500-forint non-ferrous variant will also be introduced on this national day of mourning.
200-forint coins to look different
Photo: MNB
Photo: MNB
The commemorative version of the 200-forint coin will retain the same face side as the current coin in circulation, but instead of the familiar Chain Bridge design, the reverse will feature a portrait of Count Lajos Batthyány (see above). This image, based on Miklós Barabás’ famous oil painting, extends to the coin’s edge. Below the portrait, you’ll find the year of minting, “2024”, on the left side, with “BATTHYÁNY” inscribed above, and “MAGYARORSZÁG” on the right.
One million copies of the commemorative 200-forint coin will be minted.
“Lajos Batthyány and the 13 Martyrs of Arad” commemorative coin
Face value of HUF 30,000, silver coin. Photo: MNB
Face value of HUF 7,500, non-ferrous metal coin. Photo: MNB
To honour the significance of this anniversary, the MNB will also release commemorative coins named “Lajos Batthyány and the 13 Martyrs of Arad” with face values of 30,000 forints in silver and 7,500 forints in non-ferrous. These coins are intended to serve as a tribute to the martyrs who fought for Hungary’s independence and self-determination. They will not be put into circulation. The designs of the silver and non-ferrous versions are identical, differing only in face value.
Both sides of the “Lajos Batthyány and the 13 Martyrs of Arad” coins feature a 13-sided inner rim, symbolising the reason for their release. The obverse side displays a half-length portrait of Lajos Batthyány, based on Miklós Barabás’ painting. To the left is the inscription “MAGYARORSZÁG” (Hungary), while on the right, in three lines, are the face values “30000” and “7500”, the word “FORINT”, and the mint mark “BP.” Below the portrait is Batthyány’s signature, inscribed vertically.
Reverse side of the silver coin. Photo: MNB
Reverse side of the non-ferrous metal coin. Photo: MNB
On the reverse side, a stylised representation of a kopjafa (a Hungarian memorial column) appears on the left, with the date “1849” inscribed at the top to mark the year of the martyrs’ execution (see above). Below this are the names of the 13 martyrs, listed in two columns, and at the bottom, the minting year “2024”. To the right, a part of the Arad Liberty Statue, created by sculptor György Zala, is depicted. At the top right of the reverse is the inscription “ARADI VÉRTANÚK” (Martyrs of Arad), and the designer’s signature, István Kósa, appears at the bottom.
As with previous releases, these coins will be produced in limited quantities: 6,000 silver coins and 8,000 non-ferrous coins.
To ensure the wide distribution and appreciation of these commemorative pieces, the 30,000-forint silver coin will be available for its face value for three months following its release, while the non-ferrous version will be available for one year, starting on 7 October 2024. The coins can be purchased at the Hungarian Mint’s shop (7 Báthory Street, District V., Budapest) or through their online store.
PM Orbán talked about a shockingly quick wage rise in Hungary between 2025 and 2028 in his latest interview in the Kossuth Rádió. He said the average Hungarian wage should reach HUF 1 million, the minimum wage should be EUR 1,000, and the minimum wage would equal 50% of the average income. The maths only makes sense if the forint-euro currency exchange rate worsens significantly.
450-500 EUR/HUF exchange rate may come by 2027-2028
Officials of the Hungarian government and PM Viktor Orbán talked about the significance of salary rise in Hungary. That is not surprising: in spring 2026, there will be general elections in Hungary, and Orbán has a challenger, Péter Magyar, whose support is steeply increasing.
Orbán and his government determined three numbers in that regard. They said the average wage should be HUF 1 million (EUR 2,500), the minimum wage should be EUR 1,000, and the minimum wage should be 50% of the average salary. The calculation’s result is HUF 450/EUR, which is astonishing considering the public outrage that followed the end-2022 forint historic forint fall when the Hungarian currency reached 426/EUR. Thanks to the Hungarian National Bank’s intervention and the sky-high base interest rate they introduced, the forint stabilised at the 390/EUR level.
More paper money with less value? Source: Pixabay
If we bring the regular average wage in Hungary into the calculation, which, experience shows, is 10% below the average salary (HUF 900,000), the currency exchange rate increases to 500/EUR.
Before, the Hungarian government talked about a HUF 375,000 (EUR 933) gross minimum wage as their target until 2027. However, Orbán’s wage rise means the minimum wage should increase by 50% in the next three years. That would be a 16% annual rise concerning the average wage and 14.5% in the case of the minimum wage, provided the euro exchange rate remains at HUF 400/EUR.
Experts worried that the wage rise would bring inflation and forint fall
Only a powerful Hungarian economy could generate such an increase in the well-being of the Hungarians. However, the Hungarian economy is struggling. We wrote about the falling industrial output and a possible recession HERE.
The other option is skyrocketing inflation, which would burn the “extra money” of the Hungarian households, just like it did between 2022 and 2024.
Since Orbán wants outstanding economic growth (3-6%) in the next few years, the Hungarian National Bank will not be able to stop the fall of the forint with a high base interest rate.
As a result, both Portfolioand G7suggest the government’s aims are not coherent. If they want robust economic and wage growth, they will need to sacrifice the forint and create inflation. Another consequence can be that many small and medium companies will cease operation because of the wage-price spiral.
What’s more, Bank of America analysts wrotethat the forint is significantly overvalued, and a HUF 430/EUR currency exchange rate was realistic. They added that the Hungarian economy’s productivity stagnated, and the difference between the interest rates of Hungary and the EU decreased.
National Federation of Workers’ Councils agrees with govt targets
The National Federation of Workers’ Councils agrees that the minimum wage needs to be increased to the equivalent of 1,000 euros and the average wage from the current amount, some 600,000 forints (EUR 1,500) to 1 million forints, and that this would be possible within 2-3 years, the organisation said on Friday in response to an announcement by the prime minister earlier in the day.
PM Orbán told public radio on Friday morning that a cabinet meeting earlier this week discussed ways to achieve the 1,000 euro minimum wage and the increase of the average wage to 1 million forints. Orban said the plans could be fulfilled if they managed to agree with employers and employees.
The National Federation of Workers’ Councils said it would offer all the professional help needed for the plan’s success. It is important that social partners including workers’ interest representation bodies and trade union alliances are involved in the process to achieve a more active coordination of interests, and it could result in a reform of regulations on minimum wages, it added.
Read also:
Hungarian forint doing something unprecedented: further slip expected – read more HERE
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
The forint traded at 398.68 to the euro around 10:00 in the morning on Wednesday, softening from 398.08 late Tuesday. At 1 PM on Wednesday, the exchange rate was even closer to 400, hovering over 399.43.
According to Portfolio, current trends suggest it’s only a matter of time before the EUR/HUF exchange rate exceeds the critical psychological threshold of 400. The Hungarian currency has weakened by more than 5 units against the euro in just one week, causing the EUR/HUF rate to rise to levels not seen since early August, approaching 400.
The article also highlights a shift in the dollar-forint exchange rate, which could place further pressure on Hungary’s currency in the coming days.
Economists predict that the euro could soon surpass HUF 400.
On Wednesday morning, the forint slipped to 360.23 from 359.73 against the dollar. It weakened to 426.05 from 425.31 to the Swiss franc
UPDATE: EUR/HUF reaches 400
The Hungarian currency has fallen, with the euro above 400 forints at 3.18 PM on Wednesday. The exchange rate hasn’t been this weak since March, and according to Economx, there is no rationale for a forint rise now.
Morgan Stanley has forecasted a difficult period ahead for Hungary’s currency, suggesting the euro-to-forint exchange rate could rise as high as HUF 410.
Morgan Stanley advises to short the forint
According to Economx, the American financial institution pointed to increasing risks in Hungary’s economy and advised its clients to short the forint. According to their analysts, the target exchange rate is 410 forints to the euro, which they believe is within reach.
Their rationale for this projection is based on the growing concerns regarding both Hungary’s fiscal and monetary policies. While it’s unclear when this trading recommendation was communicated to clients, it’s worth noting that on Monday, the forint performed poorly, weakening from HUF 393 per euro in the morning to HUF 394.8 by the afternoon.
Several factors are contributing to the forint’s weakening, including the anticipation of a 25-basis-point interest rate cut by the National Bank of Hungary, expected on Tuesday. The analysts provided few details in their recommendation, merely citing Hungary’s deteriorating macroeconomic environment.
Morgan Stanley isn’t the only bank voicing concerns over the forint—Barclays and Citigroup have issued similarly bleak outlooks for the currency recently, Economx writes. In the short term, Morgan Stanley sees little chance of the European Union releasing Hungary’s frozen funds, and they also flagged uncertainties surrounding the next elections. However, these points aren’t particularly convincing or new, adding little to the overall analysis.
Public spending increase before the 2026 elections?
The report also highlighted that the forint has been under pressure since early September, following rumours that the Hungarian government plans to relax its fiscal discipline in the 18 months leading up to the 2026 parliamentary elections by increasing public spending. Finance Minister Mihály Varga, however, has dismissed these claims as unfounded: as Economx writes in another article, according to a U.S. financial news agency, the Hungarian government is planning substantial cash handouts next year, which Varga has labelled as “fake news.”
In preparation for the 2026 elections, the government is expected to prioritise spending over fiscal consolidation, Bloomberg reported. However, the administration may hold off on any major decisions until after the U.S. presidential election in November, as well as the year-end credit rating review, where Hungary currently sits at the lowest investment-grade level.
The report suggested that the pre-election spending plans could resemble the strategy from 2022. Back then, tax rebates to families with children significantly fueled inflation, leading to one of the highest inflation rates in the European Union, triggering a recession and contributing to the ongoing cost-of-living crisis in Hungary. According to Index, Prime Minister Viktor Orbán supports the spending approach, believing it will secure another electoral victory, just as it did in 2022.
On 28 August 2024, the National Bank of Hungary (MNB) issued a new commemorative coin in honour of the Pannonhalma Archabbey, a UNESCO World Heritage site.
Issuance of the coin marks an important date
The release of the new forint coin marks the 800th anniversary of the abbey church’s medieval reconstruction and consecration, as well as the 10th anniversary of its designation as a national heritage site, Pénzcentrum reports. The 3,000-forint coin is part of a larger series that showcases Hungary’s national heritage sites, which was initiated in 2014 by the National Heritage Institute. The Pannonhalma Archabbey coin was designed by artist Balázs Bitó.
The Pannonhalma Archabbey is one of Hungary’s most important spiritual and cultural centres and is regarded as the cradle of Hungarian Christianity. Its thousand-year-old school and one of the largest monastic libraries in the world are located here. Established in 996 by Prince Géza in honour of St. Martin of Tours, the monastery’s church was first consecrated around 1003.
Over the centuries, it was rebuilt multiple times due to fire and war. The current church, restored in 1224, stands as a rare example of medieval architecture, still in use today for monastic prayer. Pannonhalma was officially declared a national heritage site in 2014.
The commemorative Pannonhalma Archabbey coin
Photo: MNB
Photo: MNB
The coin commemorating the Pannonhalma Archabbey is the 11th in a series featuring Hungary’s national heritage sites. The series follows a consistent design principle: one side of each coin features an image representing the entire heritage site, while the other side highlights a characteristic detail of the site. The Pannonhalma coin exemplifies this design.
On the front of the coin, within a circular border, there is a depiction of part of the abbey’s founding charter. To the right, breaking the border, is a sculpture by Géza Stremeny of St. Maurus of Pannonhalma, emerging from one of the columns in St. Martin’s Basilica. The circular edge of the coin includes the inscriptions “MAGYARORSZÁG” (Hungary) at the top, “2024” and the mint mark “BP.” at the bottom, with the value “3000 FORINT” to the left.
The back of the coin shows the Pannonhalma Archabbey complex and its surrounding landscape, again enclosed within a circular border. At the bottom, slightly extending beyond the border, is the crest of the Hungarian Benedictines. The right side features the mark of designer Balázs Bitó. The circular edge on the reverse includes the inscriptions “PANNONHALMI BENCÉS FŐAPÁTSÁG” (Pannonhalma Benedictine Archabbey) and “NEMZETI EMLÉKHELY” (National Heritage Site), separated by the emblem of national heritage sites.
The coin is made of an alloy of 90% copper and 10% zinc, weighing 18.4 grams and measuring 37 mm in diameter, with a reeded edge. Only 10,000 pieces will be minted in this bronze-patinated finish. To ensure broad access to this commemorative coin, it will be available at face value for one year following its release, as long as supplies last. Interested buyers can purchase it starting 28 August 2024, from the Hungarian Mint’s coin shop in Budapest or through their online store.
Global wealth began to rise again last year, with Hungary witnessing an increase of over 200% in average wealth per adult since the financial crisis. However, premium banking clients are now seeking to move their assets abroad in search of more favourable transaction fees. This trend could threaten cash flows and the broader Hungarian economy. Meanwhile, foreign currency loans are reaching record levels.
International trends and Hungary
As Portfolio writes, global wealth resumed its growth last year, with lower-income adults in Hungary experiencing faster growth in wealth than those in higher brackets, according to a recent UBS study. Despite this, Hungary saw an 8% decline in average wealth per adult in 2023 when measured in Hungarian forints. Yet, since the 2008 financial crisis, average wealth per adult in Hungary has more than tripled, ranking it eighth globally in terms of growth. The study also highlighted a significant disparity between average and median wealth, a pattern evident in Hungary.
Hungarians seek to move their fortunes abroad
According to Szeretlek Magyarország, the recent introduction of financial transaction levies and additional charges for currency conversion in Hungary is unlikely to drive the wealthy to move all their assets abroad. However, 10-30% of their actively managed savings may be relocated to foreign providers, as reported by hvg.hu based on Blochamps Capital’s analysis.
The National Bank of Hungary (MNB) has observed a significant shift, with financial institution deposits falling by nearly HUF 1,200 billion (EUR 3 million) in July, while foreign currency deposits rose by HUF 492 billion (EUR 1.25 million). This shift is directly linked to the new measures, particularly affecting premium banking and affluent clients, who may find the extra 0.9% transaction fee a more significant burden. Consequently, there is growing interest among these clients in opening foreign accounts, particularly with banks offering international networks.
Photo: deposiphotos.com
Why is this a problem?
István Karagich, the managing director of Blochamps Capital, warns that while it is unlikely that a significant portion of Hungary’s wealthy will move their entire wealth abroad, the relocation of 10-30% of their regularly invested assets to foreign providers could pose serious risks. Such a shift could reduce cash flows within Hungary, negatively impacting financial markets and the broader economy. To maintain the profitability of financial service providers and bolster investor confidence, it is essential to keep as much wealth as possible in Hungary, actively participating in local financial markets. A decrease in circulating funds could also lower public revenues, making long-term economic financing more challenging.
Surprisingly high rate of foreign currency loans
Telex reports that foreign currency loans now account for nearly half of all corporate loans in Hungary, a level not seen since a decade ago. The total stock of corporate loans reached HUF 12,780 billion (EUR 32.5 million) by the end of June, with most of this year’s increase driven by exchange rate changes, as the EUR/HUF rate climbed from 382 to around 395.
In addition, the rise in foreign currency loans, now totalling HUF 6,297 billion (EUR 16 million), is attributed to the scarcity of state-subsidised loans and the rising cost of forint loans. Foreign currency loans are primarily utilised by companies with substantial foreign currency revenues, such as exporters and real estate operators. However, for firms with forint revenues, these loans remain risky due to exchange rate volatility, as experienced during the 2008–2009 financial crisis.
