Forint Hits New Historic Low Against Major Currencies

  • 30 Sep 2022 11:26 AM
  • Hungary Matters
Forint Hits New Historic Low Against Major Currencies
Concerning the forint’s new historic low against major currencies, Gulyás said monetary policy was determined by the central bank.

The National Bank of Hungary is committed to keeping the exchange rate stable and correcting gyrating exchange rate movements, he added. Gulyás said he did not believe there were any real economic reasons behind the movements in the exchange rates.

He stressed that the government was not in talks with the International Monetary Fund (IMF) on raising a loan.

Government members were in agreement on Wednesday that the 2022 state budget was sustainable and the 4.9 deficit target achievable. He said there were few countries in Europe that would be capable of sticking to their original deficit targets.

Gulyás denied press reports that the government had ordered a halt to its payment obligations, adding, however, that all payments must be made with the approval of the finance ministry.

He said the reason for this was that Hungary was committed to keeping this year’s budget deficit at 4.9% of GDP.

Hungary has no solvency issues, Gulyás said.

Although the global economic environment is hectic and there are strong fluctuations in currency exchange rates, the government is doing everything in its power to stick to its deficit target, he said.

The Hungarian economy “is performing particularly well”, he said, arguing that it had strong foundations and unemployment was not on the rise.

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