Commerzbank: the zloty and forint will face significant pressure as Russia turns off the initial gas taps.

According to the Commerzbank report, "Russia decided to stop the gas line supply to Poland. As a result, the Zloty (the Poland currency) would suffer and, along with that, the Hungary currency (forint) would also come under pressure. "

April 27, 2022 - 02:57 PM 284 views

Commerzbank: the zloty and forint will face significant pressure as Russia turns off the initial gas taps.

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© Commerzbank: the zloty and forint will face significant pressure as Russia turns off the initial gas taps.

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According to the Commerzbank report, "Russia decided to stop the gas line supply to Poland. As a result, the Zloty (the Poland currency) would suffer and, along with that, the Hungary currency (forint) would also come under pressure. "

The Zloty, which is the centre of attraction for all the Eastern European currencies, would come under high pressure with the current news of the ban on Russian gas supplies to Poland.

It is predictable that energy prices will have a direct impact on the inflation rate hike. This could put a lot of pressure on Eastern European central banks, which have already raised interest rates. At present, the Polish and Hungarian central banks are keeping a keen eye on the economic threats, but they are not taking quick decisions on the current market conditions. As a result, the Hungarian and Polish currencies will be affected badly, and it could reduce the real positive interest rates in both countries.

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