HUF strengthening against the EUR since the elections

HUF getting stronger

Since the elections on April 12, HUF has been getting stronger against foreign currencies. EUR exchange rates instantly fell below HUF 370 after spending the last months between 380 and 390, and they are currently below HUF 360. This reflects a vote of confidence from international markets, which welcome the new government and its expert approach.

Strong HUF favors import

Strengthening HUF favors import businesses in the short term, since they can buy the same EUR or EUR-based products for a lower amount of HUF. The same is true for foreign investors and people who travel abroad from Hungary often. In the longer term, the entire economy will benefit from a more stable currency.

Over the past decade, letting HUF get weaker was part of a policy that would favor export companies, but it also contributed to increasing inflation and the constant devaluation of salaries. Now businesses that create products for export, including high value added services and labor-intensive products will need to adjust their medium and long term plans to a stronger and more stable HUF.

EUR introduction on the horizon

The uncertainties caused by the changes to EUR exchange rates will disappear once Hungary introduces EUR as its official currency. The new government has expressed their commitment to this cause, and estimate that EUR may be realistically introduced in 2031 or 2032, while new economy minister András Kármán asserted that conditions for EUR introduction might be met as early as in 2030.

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Helpers provides assistance not only with business setup and residency applications, but also with matters of business planning and accountancy. Should you need assistance with any aspect of business operation, administration, and compliance in Hungary, contact us and let our experts find solutions tailored to your needs.

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