History of the Hungarian Forint
The Hungarian forint has a long and complex history, dating back to 1868. However, the modern version of the forint was introduced in 1946 to stabilize Hungary’s economy after the devastation of World War II. The name “forint” is derived from the “fiorino d’oro,” the gold coins minted in Florence, Italy, starting in 1252 and used widely across the Austro-Hungarian empire.
Before the modern forint was introduced, Hungary’s economy had faced numerous challenges, including the significant effects of the 1920 Treaty of Trianon after World War I, which resulted in the loss of much of its territory and population. This led to severe economic instability, and by 1923, Hungary saw one of the worst periods of hyperinflation, with inflation rates reaching as high as 1,200%.
During the late 1980s and early 1990s, Hungary underwent a significant political and economic transformation as the country transitioned away from communist rule. Hyperinflation reached 35% during this time, but introducing a market economy in the 1990s helped stabilize the forint. The government also saw substantial growth in the early 2000s, despite ongoing inflation challenges.
Hungarian Currency Usage Today
In Hungary today, the forint remains the sole official currency, and it’s used for all transactions within the country. Despite being a member of the European Union since 2004, Hungary has not adopted the euro and has not set a target date to do so. Various factors have influenced the decision to retain the forint. Hungarian leaders, including the central bank’s governor György Matolcsy, have considered adopting the euro a “strategic error,” emphasising the potential risks it could pose to the country’s economic sovereignty.
Hungary’s economy is export-oriented, with a skilled labour force that drives key industries like car manufacturing, electronics, and machinery. While Hungary continues to develop economically, uncertainty in the foreign exchange market has often impacted the value of the forint, causing fluctuations in its exchange rate.
Travellers to Hungary will find that the forint is still the most widely accepted currency, with euros rarely used outside tourist areas. Many businesses, including restaurants and shops, prefer forints for transactions, making it essential for visitors to carry Hungarian currency during their stay.
The Role of the Magyar Nemzeti Bank and the Forint’s Position
Hungarian forint (HUF) issuance and regulation are managed by the Magyar Nemzeti Bank (MNB), or the Hungarian National Bank. Established in 1924, the central bank plays an essential role in the stability and functioning of the national economy. Its primary mission is to ensure price stability, a crucial factor in controlling inflation and maintaining the purchasing power of the forint. The MNB achieves this through various monetary tools, such as setting interest rates, managing foreign currency reserves, and implementing exchange rate policies.
One of the key functions of the Magyar Nemzeti Bank is to safeguard the value of the forint in global financial markets. Unlike some other European currencies, the forint is not pegged to any other currency, meaning it operates freely within the market based on Hungary’s economic conditions. This provides the central bank with the flexibility to adjust monetary policy according to domestic needs, which would not be possible if the forint were tied to the euro or another foreign currency.
Denominations and Coins
The Hungarian forint is available in banknotes and coins, each with distinct values and purposes. Banknotes are the primary means for larger transactions, while coins handle everyday purchases.
Banknotes
- 500 Ft
- 1,000 Ft
- 2,000 Ft
- 5,000 Ft
- 10,000 Ft
- 20,000 Ft
These banknotes feature images of important Hungarian historical figures and landmarks. The 20,000 Ft note is the most common denomination for significant purchases. The smaller denominations, such as 500 Ft and 1,000 Ft, are more suitable for daily expenses.
Coins
- 5 Ft
- 10 Ft
- 20 Ft
- 50 Ft
- 100 Ft
- 200 Ft
Hungarian coins are practical for small transactions, like public transport fares, vending machines, and minor purchases. The 200 Ft coin is the highest-value coin in circulation and is often used alongside smaller banknotes.
Understanding these denominations is crucial for managing your expenses while in Hungary. Familiarity with the different coin and note values will help you handle transactions smoothly and avoid confusion.
Exchange Rates and Conversion
The Hungarian forint’s value changes daily due to fluctuations in global financial markets. Its exchange rate against currencies like the euro (EUR), British pound (GBP), and US dollar (USD) can affect travel costs and business transactions.
Before converting your currency, checking the latest exchange rates is essential. These rates can vary depending on where you exchange money. Banks, currency exchange offices, and online services often offer different rates, so it’s worth comparing them.
Online currency converters, such as XE and Travelex, provide real-time exchange rates and help you calculate the amount of forint you’ll receive. Remember that banks may charge fees for currency exchange services, which can reduce the amount you get. Opting for services that offer no commission can save money, especially when converting large amounts.
Where to Buy Hungarian Forints?
You can buy Hungarian forints through several channels, each offering advantages and convenience.
Online Currency Exchange Services
Many online services allow you to order Hungarian forints in advance and collect them at a nearby location or have them delivered. Services like Eurochange and Travelex offer competitive rates and flexible delivery options. Ordering online often gives you access to better rates than exchanging currency at the airport or in tourist areas.
Banks and High Street Exchange Offices
Most high street banks offer currency exchange services, although their rates may not be as competitive as specialised providers. High street exchange offices, such as Post Office and Sainsbury’s, provide online ordering and in-store services.
Comparing rates between different providers can help you get the most value for your money. Some services also offer a buyback guarantee, allowing you to sell unused forints at the same rate you bought them.
Using Hungarian Currency in Hungary
Hungarian forint is Hungary’s primary means of payment for goods and services. Cash remains a common choice for small transactions while card payments are widely accepted, especially in major cities like Budapest. Markets, smaller shops, and rural areas often prefer cash, making it essential to carry some forints.
Larger businesses and restaurants generally accept credit and debit cards. However, it’s a good idea to check beforehand. When paying by card, you can often choose between paying in the local currency or your home currency. It’s usually cheaper to pay in forints to avoid additional conversion fees.
Some businesses accept euros in tourist-heavy areas, but the exchange rate may not be favourable. Always keep forints on hand for the best value.
Hungary Currency (HUF) Tips for Travellers
Managing your budget while travelling in Hungary is essential for an enjoyable experience. Knowing how much everyday items cost can help you plan better. For instance, a three-course meal at a mid-range restaurant costs between 7,000 and 14,000 Ft. A pint of beer is around 600 Ft, while a coffee costs about 300 Ft.
Taxis are affordable but often charge an additional base fee of 450 Ft per ride. Using public transport can be more cost-effective, especially in cities. Prepaid travel cards are another excellent option for budgeting, allowing you to load multiple currencies, including Hungarian forints, for easy use.
Avoid exchanging large amounts of money at airports with less favourable rates. Instead, use ATMs or reliable exchange offices.
Hungary Currency Buyback Services
Many services offer buyback options if you have leftover forints at the end of your trip. These services allow you to sell your remaining currency and convert it back into your home currency.
Some providers offer a buyback guarantee for a small fee, enabling you to sell your unused forints at the same rate you purchased them. This option is handy for frequent travellers or those unsure how much currency they’ll need.
Eurochange and similar services make the process straightforward. Simply visit a branch or complete the transaction online to convert your leftover currency quickly.
Practical Advice on Managing Hungary Currency
- Handling currency efficiently can help you avoid unnecessary expenses. ATMs are widely available in Hungary and usually offer better rates than exchange offices. Use ATMs affiliated with major banks to avoid hidden fees.
- When withdrawing cash, choose the local currency option for a more favourable exchange rate. Avoid dynamic currency conversion, which often adds extra charges.
- Carrying small amounts of cash for emergencies is advisable, but keep most of your money in a secure wallet or travel card. Be cautious in crowded areas, avoid pickpocketing, and never exchange money with street vendors.
- Staying informed about current exchange rates and understanding how to manage your forints will make your trip smoother and more economical.
FAQs
Can I use the euro in Hungary?
Euros are accepted in tourist-heavy areas like Budapest, but Hungary’s official currency is the forint (HUF). Most places, especially outside tourist zones, prefer forints for payment. It’s better to carry some forints for local purchases and better rates.
Is the dollar accepted in Hungary?
The US dollar is not widely accepted in Hungary for direct payments. If you’re travelling, it’s best to exchange your dollars for Hungarian forints or use credit cards for payments in most places.
What is the best currency to use in Hungary?
The Hungarian forint (HUF) is the best currency to use in Hungary. While euros are accepted in some tourist spots, using forints ensures better value and avoids conversion fees.
Is 1000 euros enough for a month in Hungary?
1,000 euros can be enough for a month in Hungary, depending on your lifestyle and spending. It covers basic living expenses in smaller towns, but you may need more if you stay in Budapest and eat out frequently.
How much is Hungary 100 to the dollar?
The value of 100 Hungarian forints (HUF) to the US dollar (USD) depends on the current exchange rate. Use reliable currency converter services like XE for real-time updates on conversion rates.
