The Hungarian forint exchange rate collapsed after Orban's statements on Ukraine. It is reported by Bloomberg.

The Hungarian forint lost 0.9% of its value and fell to 377.2 forints per euro, which was the largest drop among the currencies of developing countries today, May 23. The fall in the value of the forint occurred after the statements of the Prime Minister of the country Viktor Orban about the impossibility of Ukraine to defeat Russia, the agency writes..

In addition, according to Bloomberg, due to Orban's position, Hungary will now have to wait longer until the European Commission unblocks multibillion-dollar assistance to the country, which will negatively affect the local economy..

However, the fall of the forint was also affected by the decision of the Hungarian central bank to reduce by 1 point for the first time since the beginning of the year.. up to 17% discount rate.

“The rate cut will make the forint more sensitive to negative news related to both internal and external factors,” Petr Matis, senior currency analyst at In Touch Capital Markets, commented to the agency..

Hungary's key rate of 18% attracted investors, which previously helped the forint to strengthen by 6% against the euro since the beginning of the year.

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As a reminder, Hungarian Prime Minister Viktor Orbana is convinced that Ukraine is not capable of winning the war of aggression unleashed by Russia against it.. He stated this in an interview with Bloomberg..