Chamber head expresses concerns over weak forint

Analysis

Photo by Liptak Robert / Shutterstock.com

The head of the Hungarian Chamber of Commerce and Industry (MKIK) said Hungary may not benefit from a weak forint during the current period of stable economic growth in a year-end address to sector chambers, state news wire MTI reports.

Photo by Liptak Robert/Shutterstock.com

"Economic players are not indifferent to the stability of monetary policy," said László Parragh.

He said the chamber has concerns regarding the matter because of apparent risks stemming from the forintʼs exchange rate.

The forint started 2019 at around 321 to the euro but weakened to new lows several times during the year, even slipping past 337 to the common currency.

Parragh said the forintʼs weak exchange rate during the current period of stable economic growth may not be favorable for the economy in the long run, because when the need for exchange rate intervention does arise, that tool will have already been "used up".

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