Hungarian forint

Article

July 5, 2022

The Hungarian forint (its name should be written in lowercase letters; symbol: Ft, ISO code: HUF, Hungarian forint) has been the official means of payment and currency of Hungary since August 1, 1946; his bill of exchange is the penny. It has been floating freely in a flexible exchange rate system since February 26, 2008.

The history of the forint

The forint was a currency known in the medieval Kingdom of Hungary and the Austro-Hungarian Monarchy, and was also used in other countries throughout history. (For more details, see the forint and Austro-Hungarian forint articles!) After the Second World War, on August 1, 1946, following the hyperinflation of 1945-46, the present-day forint was introduced instead of the pengő. It was still gold-based money when it was issued. HUF 1 0.0757575 grams of gold. 1 kg of gold HUF 13,210. 8,700/1946 (VII.29) M.E. decree and 9000/1946. Its value was established in relation to the pengő of 1927: 1 pengő 3.4 forints. The bill of exchange for the forint became the penny (symbol: f), but it has not been in circulation since 1999. On August 6, 1946, the American army returned the Hungarian National Bank's gold reserves, 28.8 tons of gold and other valuables, which were taken away by the Arrow government. At the exchange rate of that time, this was equivalent to 374 million forints and 32 million US dollars (2,663 pieces of gold bars, one ton of gold coins and gold granules). The forint remained in circulation even after Hungary joined the European Union, and is expected to remain in circulation for a long time. The date of its withdrawal is still uncertain. After the accession to the European Economic and Monetary Union, the exchange of national banknotes and coins for euros begins, and the conversion of accounts in national currencies to euro accounts becomes mandatory. Antal Rogán, Fidesz faction leader, stated in January 2015 that the country should not introduce the European currency. In December 2014, the Hungarian press reported that, according to the plans, the five-forint coin would have been withdrawn within 3 years, and the 500-forint banknote would have been replaced by a coin. . The Magyar Nemzeti Bank denied this information the same day.

Estimate its value

The price of gold can be used to estimate the value of the HUF and the solvency of the population: In 1946 HUF 13.21/g HUF 9,360/g in 2010 HUF 15,600/g in 2020 (See: purchasing power parity) The share of the forint's gold cover was initially 25%; By December 1946, it had reached 33.8%. The Hungarian national income per capita (GDP) can only be used as an estimate: In 1946, $200 per person USD 12,840/person in 2010 The exchange rate of the US dollar also varies: In 1946, the dollar at that time was HUF 11.7 In 2017, the current dollar is HUF 271. After 1946, gold parity was only nominally realized. Although the forint has since become convertible, its value is compared to the US dollar and the euro instead of gold. The forint exchange rate between 1946 and 1952 was approx. it deteriorated two and a half times. This roughly means that in 1946 HUF 680 had to be paid for the same goods that cost HUF 1,000 in 1950 and HUF 1,680 in 1952 (apart from changes in the consumer basket during this period). in 1946 1 kg of bread HUF 0.96, 1 kg of semolina HUF 1.40, 1 kg of flour HUF 1.40, 1 kg of sugar HUF 7.00, 1 liter can of milk HUF 0.90, 1 liter of pasteurized milk HUF 1.10, 1 liter of petrol HUF 1.60, 1 letter locally HUF 0.30, 1 phone conversation HUF 0.60, 1 pack of cigarettes was HUF 2.00 The ticket system was in effect until August 31, 1949. From the beginning of 1951 to the end of 1951, the government re-introduced a temporary ticket system for the most important foodstuffs and some other goods due to the previous year's persistent drought and the decrease in livestock, to which the forced fortification of tea may have contributed.

Coins

He produced the first HUF coins as early as 1946