Hungary Cuts FX Swap Rate to 5.25%, Weakening Forint After 10% Rally

2 articles · Updated · Bloomberg · May 13

The forint fell after Hungary’s central bank unexpectedly lowered the implied rate on foreign-currency swaps to 5.25% from 5.75%.
That cut tests investors because it signals the National Bank of Hungary is trying to curb further gains in the currency rather than support it.
The move follows one of the biggest emerging-market currency rallies this year, with the forint having appreciated as much as 10% since its March lows.
The rate change suggests policymakers are using swap-market tools to manage currency strength as the forint’s rebound gathers pace.

As Hungary's new government pivots toward the EU, why is its central bank actively fighting the forint's newfound strength?

Can Hungary dismantle 'Orbánomics' and secure €10.4 billion in EU funds before the critical August deadline?