The Hungarian forint dropped today on signs that the nation’s central bank will expand its foreign-currency reserves as a way to boost the economy.
Gyorgy Matolcsy, the former Minister of Economy, was appointed as the new President of the Magyar Nemzeti Bank and is planning to consolidate power in his hands. Mihaly Varga, the new economy minister, said that Matolcsy is going to expand foreign-currency reserves as a way to encourage foreign borrowers and thus help the nation’s economy. A nation’s currency usually weakens when a central bank sells it to buy foreign currencies.
USD/HUF advanced 0.8 percent to 228.09 as of 10:43 GMT today.
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