Hungarian Forint Gains on Government’s Budget Plans

The Hungarian forint, which dropped previously on the speculations about the possible default in Hungary, strengthened today for a second day after Hungarian government pledged to stick to the budget deficit goal.

Mihaly Varga, the state secretary of the Prime Minister’s Office and the former Minister of Finance, said that the government plans to meet the 3.8 percent target agreed with the International Monetary Fund and the European Union. According to his words:

Calmly, but firmly, we must prepare an action plan as soon as possible, a series of measures that can help us attain the deficit target. The Hungarian economy needs immediate, urgent measures.

He also added that the comparison to the countries with the much higher debt risk profiles “is unfortunate” and “do not give a credible picture of the state of Hungary”.

USD/HUF traded at 235.55 today as of 12:32 GMT down from the opening price of 240.14.

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