Hungary has an extremely open economy: in 2024, exports accounted for nearly 75% of GDP, while imports reached 82%. In such an environment, the forint’s exchange rate becomes a defining factor. Even a 15% weakening over a short period places a heavy burden on import-dependent companies—and only those who manage their FX exposure consciously remain competitive.

Still, the reality is that many Hungarian businesses lack a regulated FX risk management practice. Yet a professional approach is not speculation, but a cornerstone of long-term stability.

Key questions every CFO should consider:

1. What is the strategic goal of risk management: opportunity-seeking or reducing exposure?
2. In which currency do we maximize profit—based on HUF financial reporting or international parent company standards?
3. What counts as real FX risk –  only existing contracts, or also forecasted items? Over what horizon?
4. Who is responsible for managing risks, with what tools and authority?

The tools range from natural hedging (matching FX revenues and expenses) to financial instruments (spot, forwards, options). But one principle always applies: without clear policies, regular reporting, and strict controls, risk management remains an illusion.

Accounting standards (e.g. Hungarian hedge accounting or IFRS9) now allow the effects of hedging transactions to be reflected in financial statements in line with business logic.This is the point where CFOs can “dot the i” and sleep better when exchange rates move again.

FX risk management is not a luxury, but a necessity—especially in an economy where trade volumes far exceed GDP. Beyond a certain point, monitoring positions and managing hedges requires professional system support; relying on Excel sheets can create higher operational risks than the FX exposure itself.