Here is why the Hungarian forint is losing its value again
After weeks of strengthening, the Hungarian forint started to lose its value again this week. Here is what the experts think and why.
A couple of days ago, the Hungarian forint stood around 375 to the euro. On Friday morning, the exchange rate of the Hungarian national currency worsened to 379, and in the afternoon, it was at 382. That is almost HUF 10 in just days.
According to Forbes, the reason is the latest data coming from the US job market. The number of employees in the American public sector is high. Instead of the expected 200 thousand, it grew by 245 thousand. FED, the US national reserves, would like to increase unemployment to decrease inflation. However, because of the high number of people employed, inflation in the USA does not fall. The impact is felt everywhere, even in Hungary.
LMP: Government announced ‘programme for Hungary’s economic colonisation’
Prime Minister Viktor Orbán’s speech at a conference on Thursday was tantamount to a “programme of the economic colonisation of Hungary”, opposition LMP said on Friday. In his speech at the year-opening event of the Hungarian Chamber of Commerce (BKIK), Orbán said Hungary would build gas plants in the eastern part of the country, deputy group leader Máté Kanász-Nagy told a press conference.
The plants will be fuelled with Russian gas, further curbing Hungary’s energy independence, he added. They will provide energy to the battery plants to be built in Debrecen and Nyiregyhaza, Kanász-Nagy said. “We will use Russian gas to help Chinese plants to sell their products to German car manufacturers, which then take the profit out of the country,” he said. Regarding the economic development minister’s statement that Hungary should increase the number of jobholders by 500,000, Kanász-Nagy insisted the government would rely on economic migration to achieve that goal.
“Why is the government ploughing hunderds and thousands of billions into plants that will then employ non-Hungarian workforce?” he said.
Read alsoHere is why the Hungarian forint is losing its value again
Source: