Hungary abandons euro peg

The Hungarian authorities have abandoned the forint's peg to the euro and moved to a floating exchange rate in a bid to lower inflation and speed up euro-accession.

The National Bank of Hungary and the government decided on the move which took effect on Tuesday 26 February.

The central bank said the abandonment of the peg, which pegged the Forint at 282.36 against the single currency and kept it within a 15% range of this figure, "constitutes a step toward the adoption of the euro in Hungary.