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Gov’t has no exchange rate target

Prime Minister Viktor Orbán’s cabinet chief Gergely Gulyás said the government had no exchange rate target when asked about the forint’s slide, international news wire Reuters reported.

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"I don’t think the current exchange rate would give reason for any concerns," he said.

Gulyás downplayed the impact of the weaker forint, noting that Hungarian households are no longer as exposed to exchange rate changes since the Fidesz government initiated the conversion of retail FX loans into forint loans several years earlier, index.hu added. The forint exchange rate was not discussed at a cabinet meeting on Wednesday, he said, index.hu reports.

According to XE.com, the EUR/HUF exchange rate has been hovering around 330 for multiple weeks now. This year, the Hungarian currency was at its strongest in March, with EUR 1 equalling HUF 312.