Forint gains amid alleged setback

European Commission launched so-called “infringement proceedings” against Hungary over three issues today. Adam LeBor claims that the proposed action amounts to “a serious setback” for Hungary. However, the markets disagree.

Forint strengthens to around 309 at closing January 17th

The forint rallied up to the 309 mark from over 312.5. As the above picture shows the forint traded at 324 at its worst day, which was in 2012 January so not that long ago. Compared to that level, 309 is a significant increase.

As even LeBor admits, “Hungary sold three-month T-bills worth 55 billion forints ($226m), 10 billion more than the target and at slightly lower yields.”

So where exactly is the setback?

It should be noted that the Hungary update was once again posted by A.L.B. so “ghost” (the alleged ‘other’ Budapest correspondent for The Economist) is still yet to make an appearance.

Adam LeBor however is starting to gain some name recognition inside Hungary. http://www.mandiner.hu, a news website that also does political commentary, picked his article up as one to be showcased from today.

This entry was posted in General. Bookmark the permalink.

One Response to Forint gains amid alleged setback

  1. Pingback: Forint gains further, breaks 300 threshold | Hungarian Digest

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s