Recovering forint

The superpowers are battling it out in the Ukraine and Hungary seems to have become one of the buffer zones. At the same time in more peaceful parts of the world such as the USA things are going in the good direction, the unemployment rate is lowering and consumer confidence is growing. The European Central Bank started pumping money into the European economy by launching a bond purchase programme. In Hungary the transformation of the banking system is going at full speed. Those indebted in foreign currency have been ‘saved’ by having to pay back about 20 percent more. Still, the forint reacted rather well to all of the above and seems to be strengthening. One thing is sure, the government’s measures concerning the banking system and the power games in Eastern Europe will influence Hungary’s financial situation in early 2015 as well.