At half past ten on Tuesday morning, the price of the euro crossed the HuF 405 mark, setting a new record.
At the same time, a new low was reached against the American currency, at one point it was HuF 390 to the dollar.
On June 13th, the forint exchange rate permanently crossed the psychological limit of 400 for the first time, and later, despite the MNB’s huge interest rate hike, it was unable to recover permanently. Now, the HuF 405.37 record has been broken. The following factors are behind the devaluation of the Hungarian currency:
Special taxes imposed on certain sectors of the economy do not reflect well on Hungary in the eyes of foreign investors. In general, it is not worth taking money to a country where you never know what kind of extra tax will be thrown at you from one moment to the next.
At the end of April, the rule of law procedure against Hungary started, which could jeopardize the payment of part of the EU funds.
Core inflation of 12.2 percent is one of the highest in Europe.
Price caps have been extended, which distort competition.
The FED sticks to its policy of raising interest rates, even at the cost of plunging the US economy into recession. This automatically leads to an appreciation of the dollar against smaller currencies such as the HuF.