Economy of Hungary inflation rates of below, but close to 2% over the medium term". Since Hungary is in the process of catching up (Balassa-Samuelson effect), the long-term objective is a slightly higher figure, around 2.3-3.2%. Therefore, the medium term inflation target of the Hungarian National Bank is 3%. Concerning the exchange rate system, the floating exchange rate system is in use since 26 February 2008, as a result of which HUF is fluctuating in accordance with the effects of the market in the face of the reference currency, the euro. The chart on the right shows forint exchange rates for the British
Kingdom of Hungary the Soviet occupation in 1946. The Kingdom of Hungary was a multiethnic state from its inception until the Treaty of Trianon and it covered what is today Hungary, Poland, Slovakia, Transylvania and other parts of what is now Romania, Carpathian Ruthenia (now part of Ukraine), Vojvodina (now part of Serbia), Burgenland (now part of Austria), and other smaller territories surrounding present-day Hungary's borders. From 1102 it also included Croatia, being in personal union with it, united under the King of Hungary. Today, the feast day of the first king Stephen I (20 August) is a national holiday in Hungary, commemorating