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IMF and E.U. Won’t Help — Hungarian Forint at Weekly Low

July 19, 2010 at 11:43 by Andriy Moraru

Hungarian ForintFollowing the release of the statement by IMF regarding the financial state of the Hungarian economy, the Hungarian forint fell to the lowest level since July 7 against the U.S. dollar and then rebounded slightly.

On July 17, the International Monetary Fund released the statement regarding its mission to Hungary, outlining some developments in the Hungary’s budget and economic situations but also complaining that “a range of issues remain open” with the country’s government. Viktor Orban, the current Prime Minister of Hungary, is reluctant to cut the spending side of the budget, which according to IMF is as much of an issue as the revenue side of the budget. So, without a definite decision to help with the bailout, IMF mission returns home:

The mission will therefore return to Washington, D.C. The IMF will continue to actively engage with the authorities with a view to bridging remaining differences.

USD/HUF opened with a very wide weekly gap today, jumping up from 217.91 to 223.65 (or 2.63 percent), it then rose to 224.93 (the highest level since July 7) and is now trading at 222.86.

If you have any questions, comments, or opinions regarding the Hungarian Forint, feel free to post them using the commentary form below.

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