BNP says sell Hungarian forint

In Hungary

Investors should sell the Hungarian forint because it will return to its record low against the euro this year as the nation's economy slows, according to BNP Paribas Securities SA. The Hungarian currency has rallied about 2.5% against the euro since June. It benefited last week amid anticipation of the central bank's decision to raise interest rates 28 August. The central bank raised the country's benchmark lending rate to 7.25% 28 August from 6.75%. The forint is still down 8.7% this year. Hungary's economy grew at the slowest pace in more than a year last quarter. „It is time to sell the currency on any rally,” said Elisabeth Gruie, an emerging-market currency strategist at BNP Paribas SA in London, in a phone interview Aug. 25. Weaker economic growth is „a clear hindrance” to the currency, she said. The forint advanced 0.6% to 276.38 per euro 28 August. It reached a record low of 285.15 per euro on June 20. The euro debuted in January 1999. Hungary's currency may slide to 285 per euro by year-end, according to Gruie.

The nation's inflation will reach 7% next year and slow to 4.2% by 2008, the central bank said 28 August. Annual inflation is forecast at 3.8% this year. Hungary's borrowing costs are the highest in the European Union. The economy grew at the slowest pace since the Q1 of 2005 in the April-to-June period, advancing 3.6% from the same period last year, the Budapest-based statistical office said on Aug. 15. The annual rate slowed from 4.6% in the previous three months. Hungary's economic growth is the slowest in eastern Europe. Consumer confidence fell to the lowest in a decade in July amid plans by the government to raise some taxes and cut spending to restrain a growing budget deficit, according to research institute GKI. The forint got a boost last week after the government approved the first draft of the country's euro-entry plan. Hungary may adopt the euro between 2011 and 2013, Finance Minister János Veres said on Aug. 25. Hungary last month gave up on plans to switch to the euro by 2010 after acknowledging it will fail to shrink its deficit enough to meet rules for joining the euro area. (Bloomberg,
Number of Doctors per 10,000 Inhabitants Reaches 44 Figures

Number of Doctors per 10,000 Inhabitants Reaches 44

Viktor Orbán Visits Donald Trump in Florida Int’l Relations

Viktor Orbán Visits Donald Trump in Florida

Hungarian Unis Advance in QS Ranking Science

Hungarian Unis Advance in QS Ranking

White Party at The Duchess Coming This Weekend Drinks

White Party at The Duchess Coming This Weekend


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.