In Thursday’s Government Information briefing, Minister Gergely Gulyás said that energy prices, primarily natural gas prices, were driving the exchange rate, which is why the euro has weakened compared to the dollar, taking the forint along with it.
Gulyás stated that the root causes of the Hungarian currency’s troubles were the war in Ukraine and sanctions imposed by Europe, resulting in “war inflation.” As a consequence, the United States has not weakened, China and the Asian region is becoming stronger, and all of Europe is struggling with the effects of the sanctions it has put into place.
The Minister claimed that inflation had reached the entire European economy. Inflation-wise, Hungary is doing slightly better than the countries of the region, and somewhat worse in terms of its exchange rate, he said. [Népszava]