Forint could remain weak in the long term

Analysis

The Hungarian forint is sliding to historcial lows and is expected to stay there for quite some time, Hungarian online daily Origo reported today, citing analysts. Although analyst Zoltán Török said he believes that in the short term the forint could strengthen to the euro and reach an exchange rate of 310-315, it is expected to worsen in the long term.

Analysts polled by Origo agree that the weakening of the forint is impacted by both internal and external elements. The economies of the region and the value of the euro are both on the decline, and the FX loan phase out by the Hungarian government have all contributed to the weakening the forint, while the American dollar is continuously strenghtening.

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