The Hungarian Forint: A Favorite Currency in Europe
The Hungarian Golden Forint: A Powerful Currency with a Rich History
During Europe’s Medieval era, the Hungarian golden forint held a prestigious status as one of the most favoured currencies on the ‘Old Continent’. This esteemed position was attributed to the resilience of Hungarian coins, as Hungary emerged as a leading producer of pure and high-quality gold in Europe.
Before the mid-13th century, the scarcity of good-quality gold in Europe hindered the creation of gold coins. Instead, gold coins flowed into Europe from the Middle East and Africa, where gold was abundant. European monarchs and nobles, lacking good gold resources, crafted silver coins for long-distance trade. However, the constant devaluation of these coins rendered them unreliable for ordinary people.
In response, Italian cities began crafting gold coins from imported gold, notably from the Mali Empire and Timbuktu. Following Florence’s lead, other regions in Europe embraced this approach. The stability of these golden coins stemmed from their producers maintaining their gold value.
Hungary’s entrance into the game marked a significant turning point. In the late 13th century, Hungary became the primary global producer of gold, meeting a significant portion of the world’s gold demand through Czech and Hungarian gold mines. Hungary’s gold forints depicted the Anjou coat-of-arms and Saint Ladislaus, and they became extremely popular in Europe due to holding their value for decades.
In 1335, Charles I prohibited the export of unprocessed precious metals, reflecting the strategic importance of Hungary’s gold resources. However, this abundance posed challenges, causing goods production in Hungary to become expensive, affecting competitiveness in the markets and leading to trade balance issues. Despite these challenges, Hungary retained its status as Europe’s second-largest gold producer until the discovery of America and the influx of Latin America’s gold.
The golden forints minted during King Matthias’s reign also gained widespread popularity. These forints were reproduced in regions such as Russia, North Italy, and the Habsburg Empire, but the forint remained distinctly a European currency, not reaching Asia or Africa. In the 15th century, Hungarian forint coins depicted the Madonna and Saint Ladislaus.
The Hungarian golden forint’s rich history and enduring popularity in Medieval Europe make it a fascinating and influential currency in European monetary history.
