What the HUF will face in 2023

The year 2022 was a turning point for the Hungarian forint. Analysts and traders expect a spectacular strengthening next year. But the spring months hold uncertainty. The euro could well be around 380, but could even fall below 430 forints.

HUF in 2023

The signs are that the forint will strengthen in 2023. This is based on the fact that the starting point for the weakening of the Hungarian currency was the protracted negotiations on EU subsidies. This has had an impact on the exchange rate.

The Hungarian government will have to meet 27 super-conditions by 31 March 2023 to get the first batch of aid. By then, the National Assembly must adopt a package of anti-corruption measures. “The question marks over this continue to keep the uncertainty in the foreign exchange market,” Miklós Kolba, senior treasury trader at ING Bank, explained to 24.hu.

The euro is above 400 forints because of uncertainty around EU funding. If the uncertainty disappears, we can expect a strengthening, and if some of the money arrives, it will strengthen the forint exchange rate. It is also important that the EU gas cap, energy prices, do not go very high.