10000 Forint (Golden Bull) – Hungary

In 2022, Hungary faced a severe currency crisis, with the Hungarian Forint (HUF) becoming one of the world's worst-performing currencies. The forint plummeted to historic lows against the Euro, repeatedly breaking the 400 HUF/EUR barrier and even approaching 430 at its weakest point in October. This dramatic depreciation was driven by a "perfect storm" of external and internal factors, including the economic fallout from the war in Ukraine, soaring energy prices, and a broader global shift away from risky emerging market assets amid aggressive interest rate hikes by major central banks like the U.S. Federal Reserve.

Domestically, the situation was exacerbated by a protracted dispute with the European Union over the rule of law and the withholding of billions in recovery funds, which undermined investor confidence. Furthermore, the Hungarian National Bank (MNB) faced a complex policy dilemma: while it aggressively raised its base interest rate to a region-high 13% to combat inflation and support the currency, it also introduced a series of unconventional measures. Most notably, it launched a temporary "quick deposit" facility with an even higher rate (up to 18%) to mop up excess liquidity, which was seen as a sign of market stress and created a two-tiered interest rate system.

The currency weakness directly fueled Hungary's skyrocketing inflation, which peaked at over 25% in early 2023, severely eroding household purchasing power. The government responded with price caps on essential foodstuffs and fuel, but these measures further distorted the market. By the end of 2022, intense monetary tightening and a preliminary agreement with the EU on funding conditions helped the forint recover significantly from its lows. However, the year left a legacy of high inflation, slowed economic growth, and increased costs for the state, businesses, and citizens servicing foreign-currency debts.