Fitch: Hungary could adopt the euro in 2032
Published
According to the latest analysis by the international credit rating agency Fitch Ratings, Hungary could adopt the euro as early as 2032. The agency says this date may be realistic if the country takes appropriate steps in the coming years.
The credit rating agency believes that Hungary is already close to meeting the conditions for joining the euro area. According to the analysis, the country's economy has achieved important results in recent years, but more work is needed before accession. Switching to the euro would mean that the euro, rather than the forint, would become the official currency.
Adopting the euro has both advantages and risks. In countries belonging to the euro area, foreign trade is simpler, and the impact of exchange rate fluctuations on companies' operations is smaller. At the same time, the country would lose its independent decision-making power over interest rate and exchange rate policy, which could make it more difficult to respond in times of economic crisis.
Fitch's analysis is a professional opinion and does not mean that a decision has already been made. The timing of the switch to the euro will ultimately be decided by the government and the central bank, together with fulfilling the accession criteria. Economic data and policy decisions in the coming years will show whether the 2032 target can actually be achieved.
Sources: Kontroll
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