Hungary’s central bank does not have a target exchange rate but the recently experienced high volatility of the forint is harmful, the president of the central bank Andras Simor said on Monday.
The central bank has the means to dampen the volatility of the forint, Simor said, adding that economic players find it difficult to adjust to the high fluctuation.
Head of the International Monetary Fund delegation, currently in Budapest, James Morsink said the IMF would not consider any level of the forint’s exchange rate level as worrying. The gradual decrease in interest rates has been appropriate and it should be continued in the future with caution as financial risks are lowered, he added.
The forint slipped to an all-time low of 304.75 against the euro, and firmed back to 302.80 at 4.30 pm on Monday.