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Hungary Exchange-Rate Controls
In 1981 Hungary established a unified exchange rate and
became the first Comecon country to permit limited
convertibility
of its currency. At the same time, the Hungarian National
Bank
began adjusting the exchange rate of the forint (for value
of the
forint--see Glossary)
on a daily basis against a weighted
basket
of nonconvertible currencies, using a variety of criteria
including export and domestic producer prices. The
exchange rate
functioned as a domestic price-setting guide that to a
certain
degree reflected world market prices.
Data as of September 1989
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