06/02/2020 00:21

How Much Did National Bank Earn by "Cheapening" of Forint?

How Much Did National Bank Earn by "Cheapening" of Forint?
The government and the central bank should intervene to protect the forint, said the Vice-President of MSZP at a press conference in Budapest on Monday, noting that multinational companies are te ones to profit from the weakening forint, at the expense of Hungarian employees.
The forint is at a low peak against the euro, there is a HUF hundred billion hole in the state budget and inflation is accelerating, László Szakács said.
In his view, the weakening forint is not good for halting inflation, however, it does come handy for multinational companies that pay in forint but do their financial accounting in euro. As an example, if a multinational company pays an employee HUF 300,000, it costs them EUR 1,000 when the euro is at a HUF 300 exchange rate. However, with the current rate, it only costs them EUR 880-890.
The opposition politician said the Hungarian government does a lot of payment in euro, for example, the "residency-" or "Rogán- bonds". These bonds are now expiring, the money has to be refunded, and once again, it will be Hungarian taxpayers to lose on the deal.
László Szakács said he would address a written question to President of the Hungarian National Bank (MNB) György Matolcsy and Minister of Finance Mihály Varga. He added that the main question was whether the two leaders were talking to each other. He shall also ask Mihály Varga whether the budget reserve is sufficient for the exchange rate depreciation and how much more the residency bonds cost now. László Szakács will ask the president of the central bank how much the MNB earned by "cheapening" the forint. 
Vice-President of MSZP Imre Komjáthi recalled that last week, State Secretary of the Ministry of Innovation and Technology Sándor Bodó talked about wages on the rise for eighty-three months now. The opposition politician said he wondered why trade union leaders were nonetheless "knocking on the door of the government" for a two-digit wage increase, or how come the salary of a starting teacher with a master's degree had to be adjusted to the minimum wage.
According to the Vice-President, the situation is being conserved by the current bad tax system, which makes the rich even richer and the poor poorer. In his opinion a progressive taxation system would be needed instead.