The EUR and the HUF are two closely correlated currencies, the former of which is – at least theoretically – supposed to replace the latter in the future. The pair they form is obviously not a major, nor is it a commodity pair by any stretch of the imagination, though some commodity prices do impact the rate.
Used by 21 EU members (and some other countries) the Euro is the common currency of the Eurozone and one of the boldest experiments in a shared monetary system the world has ever seen. Though it has seen its ups and downs, and it never really seems far removed from a crisis, the EUR has thus far soldiered through, and there are plans lined up to further consolidate it in the future. There are 6 more EU members – among them Hungary- who are compelled by treaty to eventually adopt the EUR.
Introduced in 1945 in its current shape and form, the Hungarian Forint had acted as the national currency of the country in different other forms before. It is now the only currency in the world formerly associated with a socialist country that is still in use.
As said above, Hungary is treaty-bound to adopt the EUR at some point in the future, though the authorities are in no particular hurry to fulfill the requirements, to join the programs leading up to Euro adoption, or indeed to join the common currency any time soon. According to MNB officials, Hungary will not adopt the common currency for many years to come.
The price of certain commodities (like heavy metals and construction materials) certainly influence the EUR/HUF pair. The close correlation between the two currencies though – underpinned by the strong trade ties – is undeniable.
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