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Foreign Exchange

Forint traders in a huff over Easter settlement date

Confusion reigned between Budapest and London on Wednesday morning as to what was the correct spot-settlement date for the forint and its cross rates.

In Hungary, Friday, April 6, is a business day, but it is effectively a half-day, and historically traders have wanted to steer clear of it as a settlement date for USDHUF. Meanwhile, in EURHUF, settlement would occur on April 11, because euro markets are closed on April 6.

However, traders were unclear on Wednesday what T+2 value date applied to USDHUF and EURHUF as trading got under way. It was not until after 11:30am London time that the Hungarian National Bank confirmed on Reuters page HUFF that the value date was, indeed, the 10th.

We at EuromoneyFXNews are none the wiser, although we are told that this dispute occurs each Easter. Calls to the Hungarian National Bank failed to shed any light and we are still awaiting a copy of its official HUF value dates.

Perhaps it’s making them up on the hoof.

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