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Forint Plunges After Orbán’s Announcement of New Special Taxes

The Hungarian forint began to fall after Viktor Orbán’s announcement late on Wednesday that the government would impose special taxes.

Portfolio reported that the euro was trading at 394.8 forints, more than a 3% drop from Tuesday evening. Such a fall in the country’s currency has not been seen for a long time in the foreign exchange market – not even when the war broke out three months ago.

The Hungarian stock exchange fell sharply today following Orbán’s declaration of a war emergency yesterday. The euro was trading at 382 Ft. in the morning, and by 4:00pm had reached 390.

The trading situation was already tense on Wednesday, as there was a lot of anticipation ahead of the decisions expected from the government meeting, and market participants have already started pricing in economic policy measures not friendly to investors.

-reports the business site.

After Viktor Orbán published his video message on Wednesday, the forint began to weaken again, and has been continuing ever since. [444]

Posted in Economy

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