5000 Forint (János Arany) – Hungary

In 2017, Hungary's currency situation was characterized by a period of relative stability and deliberate weakening of the Hungarian Forint (HUF) by the central bank, following years of volatility. The National Bank of Hungary (MNB), under its "self-financing" strategy, maintained historically low interest rates and used unconventional tools to keep the forint weak. This policy aimed to reduce the country's external vulnerability by encouraging the repayment of foreign-currency mortgages (a legacy of the pre-2008 crisis) and to boost export competitiveness through a cheaper currency.

This approach was largely successful in its domestic goals. The low interest rate environment, with the base rate held at a record low of 0.90% throughout the year, spurred economic growth and helped facilitate the government's program to convert household foreign-currency loans into forint-denominated ones. However, it came with trade-offs, notably contributing to rising inflation, which exceeded the central bank's 3% target for most of the year. Furthermore, the weak forint policy created tensions with the European Central Bank, which was concerned about potential spillover effects within the Eurozone.

Overall, 2017 represented a year of strategic monetary policy where currency management was explicitly used as a tool for domestic economic restructuring and growth, rather than being solely focused on price stability. The MNB prioritized reducing external debt, supporting the government's housing loan conversion scheme, and fueling export-led growth, even as it navigated the side effects of higher inflation and international scrutiny.