September 21, 2007
Magyar Nemzeti Bank (
Hungarian Central Bank) will withdraw from circulation HUF 1 and 2 coins on March 1, 2008. Until that time, holders of these coins may use them in shops or for charitable purposes. However, after February 29, 2008, HUF 1 and 2 coins will not be accepted, and consequently, retailers will round invoice totals, but not the individual items, of all cash payments.
One of the major tasks of the Magyar Nemzeti Bank is to supply the public and the economy with cash of adequate quantity and quality as well as of suitable denominations. Analyses have shown that for a long time HUF 1 and 2 coins
as small change have been used less and less frequently, as they do not have any significant purchasing power
. The majority of coins produced are lost, and are thus not in active circulation. In addition, the prices of metals in world markets have soared in recent years, and so the production of coins causes significant extra expenditure, not only for the Magyar Nemzeti Bank operating on public funds but also for the whole country.
For this reason, on March 1, 2008 the Magyar Nemzeti Bank will withdraw from circulation HUF 1 and 2 coins
. Until March, holders will have the opportunity to use their existing HUF 1 and 2 coins in shops or for charitable purposes. Retailers will accept as payment 50 coins of each denomination. Post offices and commercial banks will accept 100 coins of each denomination for customer transactions.
From March 2008, HUF 1 and 2 coins will not be accepted at points of sale, and consequently, retailers will round the invoice totals, but not each item, of all cash payments
. This means that the forint value of individual purchased items may end in any number, but the invoice total must end in a 0 or 5 after rounding. The obligation to round figures will not affect payments by bankcards and electronic transactions (transfers)
, as HUF 1 will remain an accounting unit in the future.
Also from March 2008, it will be possible to exchange HUF 1 and 2 coins in commercial banks, savings associations and post offices for at least 6 months, or to present them for payment at the Magyar Nemzeti Bank until March 1, 2013.
In order to inform the public, the Bank will start a comprehensive communication campaign from October 1 to ensure that the most important information reaches everyone concerned.
MAGYAR NEMZETI BANK
Currency News 2007
Starting from September 1, 2007, only the new 1000 forint banknotes will be accepted as legal tender.
The new banknotes have two security features on the front: a copper-colored metallic stripe with holographic effects and an iridescent print.
Currency & Exchange
Hungary’s national currency is the Hungarian Forint
). While some Hungarian businesses may accept payment in Euro
(€), travelers should exchange money to the local currency (HUF) before paying with cash for goods or services