"Asian markets kicked off today’s trading in amicable atmosphere that will apparently have a favourable influence on Europe, as well. As a result, Hungary’s forint managed to continue where it left off last Friday and firmed to a three-week high versus the euro in the early morning session on Monday.The weaker-than-expected GDP data for the third quarter failed to take the wind out of the forint’s sails that appreciated to 268.50 against the EUR and gained another full notch by today morning, which propelled it to its strongest level since 27 October. As an indication to growing risk appetite the US dollar is once again testing 1.50 to the EUR (after last Thursday), which means it is losing strength.
Hungary’s central bank (NBH) has released data on the preliminary financial accounts of households and general government today that showed that general government net borrowing was equal to 6.0% of GDP in the four quarters to 2009 Q3 (6.6%, according to seasonally adjusted figures in Q3). At the end of Q3, general government consolidated gross debt at nominal value amounted to 79.4% of GDP It is also bad news with respect to the country’s financing position that households’ net financial saving rose further and reached 3.4% of GDP.
Local authorities and missions from the International Monetary Fund (IMF) and the European Commission will hold a press conference at 15:00 CET today and unveil their findings about Hungary’s fiscal achievements in the past quarter and give an outlook as to how Hungary will fulfil conditions of a USD 25.1 bn IMF-led credit facility granted a year ago.
The HUF has remained under 180 to the USD today (178.80/179.10) and is quoted at around 177.50 against the Swiss franc on the interbank market."
Source: Portfolio Online Financial Journal
16.11.2009