Budapest, 18 May 2026 – “In the challenging global economic environment, stability has become more important than ever, and it can be achieved through cooperative, joint efforts in the international arena,” declared MNB Governor Mihály Varga in his opening speech at the Lámfalussy Conference. He emphasised that in this spirit the MNB’s new management had established new foundations for its operations to focus on its primary objectives, in addition to streamlining the organisation.
Governor Varga pointed out that central banks’ international relations had always been particularly important, and thus cooperation was also vital in the turbulent international arena. This cooperation was most effective when it occurred between independent central banks. As he had previously noted, we are currently seeing an unprecedented realignment of the world’s economic poles: in parallel with China’s ascendency, US dominance is facing new challenges and it is increasingly obvious that Europe is lagging behind. He added that international cooperation was all the more pressing in Europe, as the current crises in the global economy represented particularly great challenges for our continent. Varga stressed that, precisely for this reason, concentrating on the central bank’s primary objectives as set forth by law was the right decision in the current situation. These efforts were already bearing fruit, as seen in the reduction of domestic inflation to the central bank’s tolerance band in the past year and the steady appreciation of the Hungarian forint versus the euro, with the exchange rate reaching HUF 360 per euro compared to its earlier level of HUF 410. He added that the record levels of reserves and gold held by Hungary also reinforced stability and resilience, thanks to approximately EUR 60 billion of foreign exchange reserves and 110 tonnes of gold reserves. Governor Varga underlined that one of the goals of the Lámfalussy Conference was also to help us strengthen our ability to address imbalances and enhance stability, as well as to deepen cooperation in this regard.
Magyar Nemzeti Bank