Hungarian Forint Poised to Break Euro Record
The Hungarian forint is showing impressive strength lately, and reports suggest there are a number of factors behind its increased stability. After collapsing during the US banking crises in March, the forint has since regained strength and is now close to reaching its strongest level this year. Napi.hu reports that the currency is being supported by a stabilising factor in the form of the Hungarian Central Bank's strong stance on exchange rate stability, given that fluctuations in the forint's exchange rate were deemed unfavourable. A further fundamental factor contributing to the sterling performance is February's external trade surplus in goods, thanks to growth in exports, and the fact that Hungary's main export market, Germany, has weathered the crisis. The government and central bank have now issued a joint statement to promote cooperation, following months of disagreements. Finally, gas consumption also decreased by 25% in Q1, which is a positive factor influencing the exchange rate.
