Central heating

In the first 2 months of the year central banks continued their ‘competition’ to weaken their own currency, in order to speed up their economies by means of liquidity expansion or interest rate cuts.

This year no less than 20 central banks opted for this strategy, but if everyone weakens their currency the end result is like nothing happened. In Hungary the fall of broker firm Buda-Cash caused a big stir and this led to bank group DRB’s demise as well. At the moment it seems the loss is about HUF 100 billion and the number of cheated customers is around 100,000. In the meantime the Hungarian government keeps battling immigrants, inflation, liberals, the banking system and the evil European Union. The forint is relatively strong at the moment, in large part due to a rather high base rate. However, a base rate cut is like to be announced in March