Hungary won't weaken forint to boost economy
The Hungarian government plans to lure much-needed investment into the economy by making its currency more stable rather than seeking to boost exports by weakening it, new Economy Minister Mihály Varga told the Wall Street Journal. A weaker forint would support the recession-hit country's export-driven economy by making its goods more attractive abroad, but would hurt the high number of Hungarian households, companies and the state that are all holders of foreign currency debt, the minister said. "When one leg [of the country] is still trapped in foreign currency debt, there’s no way the other leg can run for higher exports," Varga said.
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