The Hungarian forint (HUF), while not among the world’s most dominant reserve currencies, plays an important role in Central and Eastern European financial markets and is a key part of Hungary’s economic identity.
As the official Hungarian currency, the forint is widely used in regional trade, cross-border investment, and currency exchange markets, especially in currency pairs involving the euro (EUR), US dollar (USD), and neighbouring economies like Poland.
In global finance, the HUF is considered an emerging market currency, offering unique trading opportunities influenced by Hungary’s monetary policy, interest rate decisions, and economic data releases. It is actively monitored by investors and forex traders looking for exposure to Central European growth, geopolitical developments, and inflation trends. Despite not having a currency peg to the euro or part of the eurozone, the Hungarian forint remains a freely floating foreign currency, making it an important benchmark for evaluating Hungary’s macroeconomic performance and broader market sentiment in the region.
The history of the Hungarian currency: origins of the forint
The Hungarian forint has a complex and historically significant background that mirrors Hungary's political and economic transformations.
First introduced on August 1, 1946, the forint was created in the aftermath of World War II, during a period of extreme hyperinflation. Its predecessor, the pengő, had become nearly worthless due to rampant inflation. The introduction of the forint brought monetary stability and restored confidence in the national economy.
The term "forint" is derived from the gold florins (fiorino d'oro), gold coins first minted in 13th-century Florence and later adopted by the Kingdom of Hungary in the Middle Ages. The florin became associated with economic strength and was historically used throughout Europe. Over the centuries, Hungary's currency has changed numerous times under various regimes, including during the Austro-Hungarian Empire, the communist era, and the post-socialist transition.
The forint remained relatively stable until the late 20th century when Hungary began transitioning to a market economy. Today, the Hungarian forint is a free-floating currency, meaning its exchange rate is determined by the open market. Although Hungary joined the European Union in 2004, it has not yet adopted the euro, and the forint remains the official Hungarian currency.
What is the symbol for the Hungarian forint?
The currency symbol for the Hungarian forint is Ft, a straightforward abbreviation of the word “forint.”
This symbol is used both domestically and internationally to denote pricing, financial records, exchange rates, and currency values involving the Hungarian currency.
In Hungary, the convention is to place the currency symbol after the number (e.g., 1,000 Ft), in line with local grammatical and typographical standards. Unlike other major global currencies such as the euro (€) or the dollar ($), the Ft symbol is not stylised but is instantly recognisable to Hungarians and increasingly familiar to international investors, tourists, and forex traders.
Hungarian currency code: understanding HUF
The ISO currency code for the Hungarian forint is HUF, a standardised code used globally in banking, foreign exchange trading, and cross-border payments.
The code is composed of three letters: the first two (HU) represent the country (Hungary), while the third (F) stands for "forint."
This designation is essential for international money transfers, currency exchange rates, and automated systems that handle large-scale financial services and operations. Whether you're buying Hungarian currency on the foreign currency exchange market, booking a trip to Budapest, or making large transfers to Hungary, the HUF code ensures accuracy and consistency in identifying the Hungarian forint.
Who issues the Hungarian forint? Meet Hungary’s central bank
The Magyar Nemzeti Bank (MNB), or the Hungarian National Bank, is the central bank of Hungary and the institution responsible for issuing and regulating the Hungarian forint.
Established on June 24, 1924, following the collapse of the Austro-Hungarian Empire and the creation of an independent Hungarian state, the MNB has played a critical role in the country’s financial stability, especially during times of economic transition and reform.
As the central monetary authority, the MNB sets key interest rates, controls inflation through monetary policy, manages Hungary’s foreign exchange reserves, and ensures the overall health of the banking system. It also supervises financial services, institutions, and maintains the security and design of Hungarian currency notes and coins.
The central bank operates independently of the Hungarian government but often coordinates with fiscal authorities on broader economic strategy. It has a mandate to maintain price stability, promote economic growth, monitor exchange rates, and prepare Hungary for potential euro adoption in the future (though no specific timeline has been set).
Hungarian forint notes and coins: a guide to HUF denominations
The Hungarian forint is issued in a wide range of banknote values and coin denominations, each designed with practical use and cultural representation in mind.
Banknotes (issued by the MNB):
- 500 Ft
- 1,000 Ft
- 2,000 Ft
- 5,000 Ft
- 10,000 Ft
- 20,000 Ft
These notes feature incorporate advanced security features, including watermarks, security strips/ threads, microprinting, and UV elements.
Coins (issued by the Hungarian Mint):
- 5 Ft
- 10 Ft
- 20 Ft
- 50 Ft
- 100 Ft
- 200 Ft
However, the 1 Ft and 2 Ft coins were withdrawn in 2008 due to their low purchasing power and high production costs.
Does the Hungarian forint have a subunit?
The Hungarian forint once had a subunit known as the fillér, where 100 fillér made up 1 forint.
Introduced alongside the forint in 1946, fillér coins were used for small-value transactions. However, by the late 20th century, Hungary experienced inflation that rendered the fillér increasingly obsolete.
The final fillér coins (1, 2, and 5 fillér) were officially withdrawn from circulation between 1996 and 1999. Today, all pricing and transactions are rounded to the nearest forint, and the fillér is no longer used in everyday financial operations.
While it has disappeared from circulation, the fillér is still remembered as a relic of Hungary’s monetary past, and it occasionally appears in older financial documents or archival records.
Hungarian forint: local names and everyday terms for the currency
The official name of the Hungarian currency is the Magyar forint, with “Magyar” meaning “Hungarian.” Locally, it is almost always referred to simply as “forint,” both in formal and informal settings.
However, in English-language contexts, it is often referred to as the “Hungarian forint” or “HUF,” especially in financial publications, exchange rates, money transfers, and travel advisories.
While many currencies around the world are associated with playful or colloquial nicknames (e.g., “quid” for the British pound), the Hungarian forint has relatively few such terms. Occasionally, Hungarians may informally reference large sums using shorthand expressions, but no consistent or widespread nicknames exist.
Hungarian forint in forex: most traded HUF currency pairs
The Hungarian forint is actively traded on the foreign currency market, particularly in relation to major global currencies. While it is not among the world’s most heavily traded currencies, the forint is of interest to forex traders, investors in emerging markets, and multinational companies operating in Central and Eastern Europe.
The most common HUF trading currency pairs include:
- EUR/HUF – Euro to Hungarian forint
- USD/HUF – US dollar to Hungarian forint
- GBP/HUF – British pound sterling to Hungarian forint
- CHF/HUF – Swiss franc to Hungarian forint
- PLN/HUF – Polish zloty to Hungarian forint
Among these, EUR/HUF is by far the most liquid and widely traded pair, reflecting Hungary’s strong trade relationships with the eurozone.
USD/HUF and GBP/HUF are also commonly used for portfolio diversification, FX risk management, and hedging. Currency volatility and market fluctuations can be driven by Hungarian interest rate decisions, EU policies, inflation trends, and geopolitical events in the region.
Frequently asked questions (FAQs)
What is the currency of Hungary?
The official currency of Hungary is the Hungarian forint, abbreviated as HUF. It has been in use since 1946 and is issued by the Magyar Nemzeti Bank (Hungary’s central bank). The forint is used for all domestic transactions and is the legal tender across the country.
Can I use euro in Hungary?
Technically, no—the euro is not legal tender in Hungary. Hungary is an EU member but has not adopted the euro. That said, some businesses in tourist-heavy areas (like hotels, airports, and shops in Budapest) may accept euros at their own exchange rate, which is often less favourable than market rates. It's best to pay in Hungarian forints (HUF) to ensure fair pricing.
Are Ft and HUF the same?
Yes, Ft and HUF both refer to the Hungarian forint, but they are used in different contexts:
- Ft is the currency symbol used in prices (e.g., 1,000 Ft).
- HUF is the international ISO currency code, used in banking, forex trading, currency exchange, and international payments.
Both represent the same currency.
What denominations does the Hungarian forint come in?
The Hungarian forint is available in both coins and banknotes:
- Banknotes: 500 Ft, 1,000 Ft, 2,000 Ft, 5,000 Ft, 10,000 Ft, and 20,000 Ft
- Coins: 5 Ft, 10 Ft, 20 Ft, 50 Ft, 100 Ft, and 200 Ft
The fillér, which was once the subunit of the forint, has been discontinued and is no longer in circulation. All transactions are rounded to the nearest whole forint.
