Currencies

Even the currency of war-torn Ukraine is outperforming the forint

According to some experts, it cannot be ruled out that the price of a euro will slowly rise to 440 forints. Last week, the forint has repeatedly hit its historic lows against the euro. Not even in Bulgaria or Albania is the euro so expensive!

Hungarian forint is doing worse than ever

While even war-torn countries are able to stabilise, Hungary is experiencing a deep downturn, Pénzcentrum.hu reports. The euro is threateningly close to 400 forints. The central bank tried to improve the situation by raising interest rates, but this did not help either, as the forint weakened even after the announcement on Thursday.

Central European currencies

Other currencies in Central Europe have weakened especially since the outbreak of the Russian-Ukrainian war, but none to the extent of the Hungarian currency. In addition to the Hungarian forint, Pénzcentrum.hu looked at the currencies of nine countries to see which weakened the most in the period after January 1st and after the outbreak of the Russian-Ukrainian war.

What they found was the fact that the Hungarian forint is leading the weakening. Our currency has weakened by 11 percent against the euro since the very first day of the year, compared to only 4.5 percent for the Polish zloty.

The V4 countries are also coping quite well with the deterioration of their currencies, which were also weakened by the war. The Czech koruna took a nosedive at the beginning of March, but had recovered somewhat by 7 March.

Ukraine and Russia

It is also difficult to explain why Ukrainians, invaded by Russia in February, have been able to maintain the stability of their currency, writes the newsportal. Evidently, in the weeks after the outbreak of the war, the currency has weakened slightly – close to 33 hryvnias to the euro – and on 7 July, the euro was worth 30.17 hryvnias. This is even slightly better than the figure of 1 January.

On 1 January, the price of a euro was 85 Russian roubles, a figure that rose brutally after the outbreak of the war, to 148 at the beginning of March. Despite the near bankruptcy and technical insolvency, the euro is now below 65 roubles. This is also better than the January figure.

11 percent weakening

What is shocking is that the forint has depreciated by 11 percent since January. Among our neighbours, the Ukrainian currency has even strengthened, the Serbian dinar has strengthened minimally and the Croatian kuna is at 0 percent – neither did it strengthen nor weaken. Of the countries surveyed, only the Polish zloty has depreciated, apart from the forint: the euro is now 4.35 percent more expensive in Poland than it was at the beginning of the year.

European Commission Brussels
Read alsoWill the Hungarian government give in to Brussels to save the forint?

Source: Pénzcentrum.hu, hvg.hu

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