Polish, Hungarian currencies take a beating

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Poland’s currency, the zloty (PLN), saw a 12-year low against the euro, while the Hungarian forint (HUF) also plunged to a new historic low this week. On Monday, one euro was worth PLN 4.72 at the zloty’s weakest point, while one euro equaled HUF 370.24 in the Hungarian currency. The forint’s fall comprised half a percentage point compared to what it was worth last Friday. Its previous record low on the euro was HUF 369.6 in April of 2020.

Yesterday afternoon, the weakened zloty regained some value after Polish Prime Minister Mateusz Morawiecki, a former banker, said his country would take action to firm it up. Amongst emerging markets, Poland’s currency was the third biggest loser in terms of its devaluation on Monday, following the Turkish lira and the South African rand. The value of EUR 1 later reached PLN 4.6875 following remarks by the Prime Minister and Finance Minister.

Pressures on the zloty include a migrant crisis on Poland’s border and allegations by the EU that the country is undermining democracy.

Source: Bloomberg Quint, Telex

CET Editor

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