In 1963, Australia changed the English shilling-based monetary system to the decimal system. At that time, more than 1000 applications were submitted offering the name of the new currency. Among them are royal, Australian and koala. However, subsequently, the choice was made in favor of the name “Australian dollar”.
The first paper Australian currency appeared in 1986. Australian 1 dollar bills stopped being printed in 1984. Banknotes were replaced with iron coins. After 4 years, a denomination of 2 Australian dollars was removed from circulation.
The monetary unit of Hungary used until 1946 was pengyo. In August 1946, the forint was introduced into trade again. The name of the currency itself comes from the city of Florence, where gold coins were minted in the 1200s. Money, called “florentin” or fiorino d’oro, later migrated to Hungary in the 1300s, and later became known as the “forint”.
The forint remained stable until 1970-1980. During this period, the country’s economic system has lost its competitiveness. With the advent of capitalism in 1980-1990, the Hungarian currency faced annual inflation of 35%, which remained stable high for three years.
Banknotes can be exchanged at the Central Bank of Hungary, other credit institutions and post offices if more than 50% of the banknote is damaged. Hungarian forint banknotes have various design features to protect against fraud, such as hidden images, holographic stripes, and images that appear only under different UV lighting or with magnification.
The Hungarian Central Bank website has an interesting feature where you can familiarize yourself with some anti-fraud measures.
Hungary is mainly an exporter of manufactured goods and engineering materials. As a member of the European Union, the long-term goal of the government can be to replace the forint with the euro, but it is predicted that this will happen in 2020.
The Australian dollar is stable because the country’s economy is fairly well protected from negative influence factors and sudden changes. An important place in this issue is occupied by gold exports, due to which the national currency looks stable and can even grow against the background of the global economic crisis.
At the same time, a decrease in demand for the precious metal will weaken the Australian dollar and increase the volatility of the exchange rate. The AUD/HUF pair is not popular among traders. But many simply underestimate its potential.
The fact is that Hungary, although it entered the EU, has left the national currency. This creates certain difficulties for trade within the European Union and forces some companies to withdraw assets from the country.
In addition, the economy of Hungary is not as strong as that of its closest neighbors. To maintain the competitiveness of export products, companies have to lower their prices, which is offset by the salaries of ordinary employees.
Together, these factors do not lead to rapid GDP growth, as a result of which the HUF is subject to absolutely any impact: from direct economic news to political statements that are only indirectly related to Hungary.
As a result, the trader can count on high market volatility. But it will be very unpredictable, so it will be suitable primarily for those who prefer to work using scalping methods.
Long-term investments in a pair are very risky and most likely will not materialize, so most experts caution against such transactions.
Nevertheless, the market periodically experiences predictable and fully controlled events, such as the publication of financial statements or an employment index, the volume of gold mined and demand for it, and changes in bets on national currencies.
When using a smart strategy, such events will bring a good margin, but a trader should try out ideas on a demo account. It is quite difficult to do such manipulations without experience.