Nicosia, 22 May 2026 - “In a European and global economic environment fraught with uncertainty, it has become more important than ever for central banks to ensure predictability and stability,” according to MNB Governor Mihály Varga, in attendance at the informal ECOFIN meeting. He stressed that cooperation between independent central banks formed an important basis for European financial stability and explained that the Magyar Nemzeti Bank had also organised its own operations in this spirit.
Varga highlighted that the outlook for European growth over the short to medium term was currently characterised by significant uncertainty, while the prolonged conflict in the Middle East entailed serious downside risks. In this turbulent environment, international cooperation between independent central banks was increasingly important and functioned as a cornerstone of stability. He added that over the past four years the MNB had strengthened its international relations and put resilience at the heart of its operations. As he had previously noted, thanks in part to this approach Hungary held record levels of reserves, amounting to approximately EUR 60 billion of foreign exchange reserves and 110 tonnes of gold reserves. Moreover, one result of the past year’s efforts was that inflation in Hungary had dropped back to the central bank’s tolerance band and the EUR/HUF exchange rate had appreciated to below EUR/HUF 360 compared to its earlier level of EUR/HUF 410.
Speaking about the lively domestic discussions about joining the euro area, Governor Varga stated the that the MNB’s aim was for Hungary to join the euro area as a competitive, well prepared economy. As he had previously said, the Magyar Nemzeti Bank would work constructively with the government to fulfil the Maastricht criteria. He added that in this respect as well the central bank played a prominent role in preserving stability and achieving and maintaining price stability.
Magyar Nemzeti Bank