ABSTRACT
In the 1970s, Hungary built new regional markets for convertible currency exports in some Middle Eastern oil exporting countries, especially in Iran, Iraq, Libya, and Algeria, and by increasing exports denominated in convertible currencies to socialist countries, mainly the Soviet Union. And Hungary's surpluses achieved in convertible currency trade with socialist countries started to decline, with Hungarian exports declining and imports increasing. Hungarian trade policies towards the West consist mainly in efforts to reduce tariff and non-tariff barriers affecting Hungarian exports to western markets. In 1981, the so-called non-commercial exchange rate was unified with the exchange rate applied in foreign trade. Despite the change in the planned growth rates the statements on the commodity and regional composition of foreign trade contained in five-year plan can be regarded as still reflecting the planners' expectations. The reform is intended to be accompanied by a reduction of consumer prices and of enterprise subsidies and thereby to make goods and factor prices more realistic.
