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Stronger Forint may outlast the New Year

January 17th, 2024

A left-wing analyst believes the next challenge to the national currency will come in a year from now.

In Népszava, Zsolt Papp remarks that the weakening trend of the Hungarian national currency has been interrupted for the first time in ten years, as the Forint gained five percent last year. He attributes that result to the higher interest rates introduced by the National Bank which closed 2023 2000 billion Forints in the red as a result. At any rate, the issuing bank has convinced the market of the consistency of its monetary policy and Papp is confident that no setbacks will intervene before the end of the year. Next year however, the mandate of the management of the National Bank will expire, and depending on who the new managers will be, vital market confidence could be shaken, he ruminates.


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