Topline
On Friday, Hungarian Prime Minister Viktor Orbán announced that the Trump administration is ready to extend its support to Hungary’s currency, the forint, in the event of speculative attacks. This revelation comes as Orbán, a right-wing leader, continues to emphasize the economic alliance with his ally, former U.S. President Donald Trump. The Hungarian government is ramping up spending as it gears up for the general elections scheduled for next year.
During an interview with state media, Orbán highlighted what he described as a “financial shield” he claims to have secured during his recent visit to the White House. Orbán met with Trump last week, where this financial backing was reportedly discussed.
The prime minister explained that this protective measure consists of “four or five internationally known, transparent and visible” financial instruments. He indicated that these would only be activated if Hungary encounters economic difficulties.
Orbán also alleged that the Hungarian forint faces regular speculative attacks, although he did not provide concrete evidence to support this claim. He assured that should such a situation arise, the financial support promised by the U.S. would be deployed.
Despite Orbán’s assertions of economic threats, Hungary’s currency has remained stable, even appreciating against the Euro throughout the year. However, there was a minor dip in the forint earlier this week. This coincided with Hungary adjusting its budget deficit targets to 5%, a move intended to facilitate increased government spending in anticipation of the upcoming general elections in April.
The Hungarian leader’s claims of speculative attacks come even as his country’s currency remains stable and has risen against the Euro throughout this year.
The forint dropped slightly earlier this week after Hungary raised its budget deficit targets to 5% to accommodate more government spending ahead of general elections in April next year.
The White House has not yet publicly commented on Orbán’s “financial shield” claims.
Tangent
Last week, Orbán met with Trump at the White House and secured a one-year exemption for his country from U.S. sanctions for using Russian oil and gas. Last month, the Trump administration imposed a fresh set of sanctions targeting Russia’s two largest oil companies, Rosneft and Lukoil, and threatened further action unless Moscow agreed to a ceasefire in its ongoing war with Ukraine. Before the meeting, Orban, who has been a close ally of Trump for years, had argued that access to Russian oil and gas was critical for the Hungarian economy.
