Euro / Hungarian Guilder - EUR/HUF

Entirely convertible into the other currencies since 2001, the Hungarian guilder (HUF) had previously sharply depreciated in the context of a strong inflation in Hungary in the 90s (end of the « Eastern bloc countries » and birth of the Democratic republic of Hungary).

Whereas the Hungarian guilder is not associated to the ERM II system (Exchange Rate Mechanism II) that defines the convergence criterion between the European Union countries with the view to integrating the Euro area, the Central Bank of Hungary maintained its currency in a fluctuation band of +/- 15% against the Euro in the XXIth century (in particular from 2003 to 2007).

The question of the important Hungarian public debt will delay the integration of Hungary in the Euro area, an integration that initially had to take place in 2013.

From an exchange value that was established at 264.97 points in January 2001 (1 EUR = 264.97 HUF), the EUR/HUF cross first decreased (the Hungarian guilder appreciated against the Euro) until January 2003 (EUR/HUF = 235,09), before increasing up to 270 points by the end of 2003.

Then, the EUR/HUF cross will remain around 250 points until February 2006, whereas Hungarian became a member of the European Union during the year of 2004.

Then, the Euro clearly appreciated in few months (EUR/HUF = 282.45 in July 2006). After, the Hungary guilder increased in value for a long time against the Euro until July 2008 (EUR/HUF = 228.16).

In the financial storm during the Fall of 2008, the Hungarian guilder sharply and very quickly depreciates again (the +/-15% were provisionally abandoned) until an higher point of the EUR/HUF cross reached in Marc h 2009 at 316.50.

Then a clear adjustment intervenes (EUR/HUF = 267.31 in October 2009) ; as the Hungarian guilder appreciated by 15% against the Euro in few months.