The Hungarian Forint (HUF) may not be a household name in most Australian circles, but for a growing number of expats, investors, and globetrotters, the currency’s fortunes are increasingly relevant. With Hungary retaining the Forint as its official currency in 2025—despite years of speculation about euro adoption—the HUF’s performance has distinct implications for anyone exchanging money, investing in Eastern Europe, or planning a trip to Budapest.
The HUF in 2025: Stability or Volatility?
In 2025, the Hungarian Forint is navigating a landscape marked by both opportunity and risk. The Hungarian National Bank (MNB) has kept its benchmark interest rate relatively high compared to its Eurozone neighbours, aiming to tame inflation and support the currency after a turbulent 2022-2023 period. As of June 2025, the HUF has stabilised somewhat, trading around 390–410 to the Euro and 600–620 to the Australian dollar, though volatility lingers due to broader European economic uncertainty.
- Inflation: Hungary’s inflation rate, once among the highest in the EU, has eased to around 4.5% in 2025, down from double digits in recent years.
- Interest Rates: The MNB’s base rate hovers at 7.25%, attracting some foreign capital but also raising borrowing costs domestically.
- Euro Adoption: There is no formal timeline for Hungary to join the Euro, keeping the HUF firmly in play for the foreseeable future.
Why Australians Should Pay Attention
Whether you’re an Australian with family roots in Hungary, a property investor eyeing Budapest, or just planning a Danube river cruise, the HUF’s movements impact your bottom line. Here’s how:
- Travel: Australians visiting Hungary in 2025 benefit from the relatively strong AUD against the HUF, making holidays and short-term stays more affordable. For example, a meal in Budapest averages 3,500–5,000 HUF, roughly $8–$12 AUD, making it a budget-friendly European destination.
- Remittances & Banking: Sending money between Australia and Hungary is simpler thanks to digital transfer platforms, but exchange rate margins and fees can still add up. Watch for mid-market rates and time transfers for favourable AUD/HUF movements.
- Investing: Hungary’s real estate and government bonds remain accessible to foreign investors, but HUF-denominated assets carry currency risk. The Forint’s recent swings mean gains can be eroded—or amplified—by currency movements.
2025 Policy Updates and Real-World Impacts
2025 has brought several policy shifts worth noting:
- Foreign Currency Loans: The Hungarian government continues to restrict the availability of foreign currency mortgages to curb household exposure to exchange rate risk. Most personal and property loans must be in HUF.
- Capital Controls: No new capital controls have been introduced, keeping Hungary open for cross-border investments, though regulatory scrutiny on large transfers remains high.
- Travel Rules: Australians can spend up to 90 days in Hungary (and the Schengen area) without a visa, but must declare cash over €10,000 (approx. 4 million HUF) at the border.
For instance, an Australian retiree purchasing a Budapest apartment in HUF will find that their investment’s value can fluctuate daily with the currency, even if local property prices are stable.
Tips for Managing HUF in 2025
- Use international money transfer services with transparent AUD/HUF rates.
- Monitor HUF trends if you’re holding savings or assets in Hungary.
- Consider multi-currency accounts if you regularly move funds between Australia and Europe.
- Check for policy updates from the Hungarian National Bank and Australian regulators for any new requirements or restrictions.
