Hungarian forint

Hungarian forint. The forint is the official currency of Hungary, issued by the country's central bank, the Magyar Nemzeti Bank. It was reintroduced on August 1, 1946, to replace the hyperinflated pengő and stabilize the postwar economy, becoming a symbol of national recovery. The currency is subdivided into 100 fillér, though these subunits have been obsolete since 1999 due to inflation.

History

The forint's name derives from the city of Florence, where gold coins called *fiorino d'oro* were minted in the 13th century, and the currency was first used in the Kingdom of Hungary from 1325 under Charles I of Hungary. After the dissolution of the Austro-Hungarian Empire, the Hungarian korona was introduced, followed by the pengő in 1927. The Second World War and subsequent Hungarian hyperinflation rendered the pengő virtually worthless, leading to the introduction of the adópengő as a temporary unit of account. The modern forint was established by decree of the Provisional National Government under the influence of the Hungarian Communist Party, with its initial value set with assistance from the Soviet Union. The currency survived the Hungarian Revolution of 1956 and the transition from a planned economy to a market economy after the fall of the Eastern Bloc, with the Magyar Nemzeti Bank gaining full independence in 1991 following the passage of a new central bank act by the National Assembly (Hungary).

Coins

The first modern forint coins, minted by the Hungarian Mint Ltd., were introduced in 1946 and featured the Coat of arms of Hungary and wheat sheaves. Decimalization in 1992 led to a new series, with current circulating coins including the bimetallic 100 and 200 forint pieces. Commemorative coins are regularly issued to mark events like the Millennium of Hungary and anniversaries of figures such as Béla Bartók and Albert Szent-Györgyi. The obverse of standard coins typically displays the value and mint year, while reverses have featured national symbols like the Holy Crown of Hungary and the Budapest Parliament Building. The small 1 and 2 forint coins, made of copper-plated steel, have been phased out of general circulation but remain legal tender.

Banknotes

Banknote series have evolved significantly, with early issues depicting workers and national symbols aligned with the Hungarian People's Republic. A major redesign began in 1997, featuring prominent historical figures on the obverse and related landmarks or works on the reverse. Current notes include the 500 Ft with Ferenc Rákóczi and the Sárospatak Castle; the 1000 Ft with King Matthias Corvinus and the Hercules Fountain; the 2000 Ft with Gábor Bethlen; the 5000 Ft with István Széchenyi; the 10000 Ft with Stephen I of Hungary; and the 20000 Ft with Ferenc Deák. The Magyar Nemzeti Bank has introduced polymer notes for the 1000 and 2000 forint denominations and issues commemorative notes, such as for the 1100th anniversary of the conquest of the Carpathian Basin.

Exchange rates and value

The forint was historically a non-convertible currency within the Eastern Bloc but became fully convertible in the 1990s. Its exchange rate was initially managed via a crawling peg system before transitioning to a free float. The currency is influenced by the monetary policy of the Magyar Nemzeti Bank, the decisions of the European Central Bank, and global market sentiment. It experienced significant pressure during the Financial crisis of 2007–2008 and the European debt crisis, and its value is often discussed in relation to Hungary's goal of joining the Eurozone, though no official target date for adopting the euro has been set. The forint's performance is closely watched against major currencies like the United States dollar, the euro, and the Swiss franc.

See also

* Economy of Hungary * Hungarian National Bank * Pengő * Central and Eastern European