HUF (Hungarian Forint)
Candlefocus EditorBanknotes of the currency range in value from Ft500 to Ft20,000 while coins are minted between lowest value Ft5 to Ft200. Although Hungary is an official member of the EU, the country has not yet adopted the euro as its official currency, and instead retains its forint coins and notes for domestic and commercial use.
Under the Second Hungarian Republic and Communist Party rule, the forint was regularly devalued as an attempt to control inflation and to make Hungarian goods cheaper for exports. From 1950 to 1971, the devaluation rate had grown by a staggering amount from one forint to four, all the way to one forint to 128. Following the fall of Communism and the break up of the Soviet Union, the forint enjoyed a brief period of value, though the currency dropped in the early 1990s when the country joined the EU.
In the years since, the government and the Magyar Nemzeti Bank have sought to manage the forint better, developing a major programme to strengthen the currency's value. It saw the official repeal of the so-called "Cumulative index" system, which was put in place in the late 90s to ensure the currency remained stable, and more recently the formation of the so-called "Eastern Opening Initiative". This saw the bank opening up investment in the forint for non-residents for the first time, thus increasing liquidity to make the currency more attractive to foreign investors.
Overall, the Hungarian forint has seen a rise in value over recent years, yet the currency remains susceptible to the marketplace and global investment trends. Its ongoing strength or otherwise will be a major indication of the success of the Eastern Opening Initiative and the country's willingness to accept the euro. Nevertheless, the 'Ft' remains the official currency of Hungary for now, acting as a reliable for of payment for goods and services across the country.