HUF (Hungarian Forint)

Posted on by user

Hungarian Forint (HUF): Overview

The Hungarian forint (HUF), symbol Ft, is the national currency of Hungary. It is issued and managed by Magyar Nemzeti Bank (the Hungarian National Bank), which is responsible for maintaining price stability and conducting monetary policy. The forint was introduced in its modern form in 1946.

Key facts

  • Currency code: HUF; symbol: Ft
  • Issuer: Magyar Nemzeti Bank (central bank of Hungary)
  • Not pegged to another currency; exchange rate floats on the foreign‑exchange market
  • Banknotes: 500, 1,000, 2,000, 5,000, 10,000 and 20,000 forints
  • Coins: 5, 10, 20, 50, 100 and 200 forints
  • Subunit: 1 forint = 100 fillér (fillér coins were withdrawn from circulation in 1999)

How it works

Magyar Nemzeti Bank issues banknotes and oversees the money supply, using monetary policy to pursue price stability and to support broader economic objectives. The forint trades freely against major currencies such as the euro and U.S. dollar; it is not part of a fixed exchange‑rate system.

History in brief

  • The name forint traces back to the medieval gold florin (fiorino d’oro) of Florence.
  • A form of the forint circulated in the late 19th century; the modern forint was reintroduced in 1946 to stabilize the post‑World War II economy.
  • Hungary has experienced episodes of high inflation during the 20th century, especially after World War I and during the economic transition from centrally planned to market systems in the late 1980s and early 1990s. These events shaped later monetary policy and currency management.

Relationship with the euro

Hungary is a member of the European Union but has not adopted the euro. Reasons include:
* A policy preference to retain independent monetary policy and the ability to respond to economic shocks.
* Concerns raised after the 2007–08 financial crisis and subsequent sovereign debt strains in the euro area, which highlighted risks of surrendering national monetary tools.
Hungary is not in the EU’s Exchange Rate Mechanism (ERM II), a typical step toward euro adoption, and there is no committed timetable for joining the eurozone.

Practical considerations for visitors

  • The forint is Hungary’s official and generally preferred means of payment.
  • Some hotels, tourist businesses and larger merchants may accept euros, but exchange rates offered by merchants can be unfavorable and change is usually given in forints.
  • U.S. dollars and other foreign currencies are not widely accepted for routine transactions; it’s advisable to exchange money into forints or use ATMs/banks.

Summary

The forint remains Hungary’s independent currency, managed by Magyar Nemzeti Bank. It circulates in a range of common banknote and coin denominations, operates under a floating exchange rate, and continues to be preferred by authorities who value monetary autonomy over adopting the euro.