PM Orbán nominated new Hungarian National Bank governor, forint strengthening, government change comes

After the nomination, the Hungarian forint started to strengthen. #forint #nationalbank #nbh #mnb #viktororban

“We have never been this close to peace, and the wartime situation has never been this dangerous,” Prime Minister Viktor Orbán said in an interview with public radio on Friday. The prime minister also said he has nominated Mihaly Varga to serve as central bank governor, adding that the incumbent finance minister has accepted the nomination.

As regards the Russia-Ukraine war, Orbán said “we’re in a very difficult and strange situation”, adding that there had been two recent reports which emphasised the responsibility of European politicians.

One of these, he said, was that Russia had “indeed launched an intercontinental ballistic missile capable of carrying nuclear warheads”. “If they use these, the war will escalate into a global conflict and will also have a nuclear dimension,” he warned. Orbán also cited Russian reports saying that American and French troops have also died in air strikes. “This goes to show the danger of the war’s escalation and expansion,” he said.

viktor orbán
Photo: FB/Orbán

“This is an extremely dangerous moment,” the prime minister said, adding that he hoped that the “weapon demonstration” will urge the West to exercise caution.

Depressing developments in the European Parliament

Meanwhile, Orbán called Thursday’s developments in the European Parliament “depressing”, saying it was clear that many European heads of government wanted to continue the war “and even step up its intensity”. Orbán said that the EP adopted a resolution reinforcing its support for Ukraine in which it declared that “a pro-peace president may have won in America, but for now there’s still a pro-war administration in power”.

He said the “Trump effect” could not yet be felt, as the incumbent US administration was the one to decide on giving more funding to Ukraine.

“We have to survive the next 1.5-2 months,” Orbán said, noting that Hungary was engaged in “intense diplomatic efforts in the interest of a ceasefire and peace”. Orbán said he will speak with the president of the new European Commission on Sunday.

PM Orbán nominated Minister Mihály Varga as Hungarian National Bank governor

Concerning Varga’s nomination as central bank governor, Orbán said Varga was Hungary’s most experienced economist and politician dealing with economic policy.

“From January 1, we will undoubtedly be working under a different economic management system,” Orbán said, adding that he would be happy to discuss the details “in due course, in December”.

Highlighting the role of the central bank, the prime minister said the bank was key to the Hungarian economy, a “safeguard of stability”, an institution which had “the powers, skills, decision-making positions to preserve the value of the forint and to fight inflation.”

PM Orbán wrote in a Facebook post that Mihály Varga had already seen “a crow on a pole.”

Referring to his candidate for governor, he suggested Varga was one of “the most experienced and calmest” experts “who has been in difficult battles … and could stand his ground in any situation.” He said the position required “experience in economic policy, not just intellect,” adding that apart from Varga, the national economy and energy ministers had also been eligible candidates. He noted that Marton Nagy, the national economy minister, had served as deputy governor of the central bank before, but added that he had “resisted the temptation” of proposing Nagy for the post.

Orbán praises Matolcsy

Concerning the incumbent central bank chief, Orbán said György Matolcsy had done “quite an excellent and good job” in his position. He added that Matolcsy was “impulsive” and had “continuously sent impulses to the government”, and expressed his gratitude for Matolcsy’s “making proposals for the right decisions at the right moment”. He said it had been Matolcsy’s “heroic deed” to help forex loan holders “out of the trap many hundreds of thousands of families in central Europe had been caught in”.

The outgoing governor had “historic merits”, Orbán added.

Meanwhile, Orbán said that an increase in the minimum wage would push up all other wages as well. He suggested that the current wage increase was so large that during the combined three years it would amount to a 40 percent increase, which he said was not only unprecedented in the history of Hungary, but a wage increase of this magnitude had only occurred once in Europe.

He said he was proud of the agreement and the government’s contribution to the deal. He said the government sought to help employers through tax benefits to ensure that they can offer higher wages. He said he trusted that the trend would continue and the government’s goal to increase the average wage to one million forints a month could be achieved.

 

Mr Varga said he would serve Hungary’s stability and development:

4,800 days spent as minister

Finance Minister Mihaly Varga said on Friday that he is accepting the nomination for the position of governor of the National Bank of Hungary (NBH). “I accept the honourable request of the Prime Minister with gratitude. I will continue to serve the stability and prosperity of Hungary with my future work,” Varga said in a post on social media. He noted that it has been a great honour for him to serve his country for 4,800 days, first as national economy minister then as a finance minister.

Finance minister Mihály Varga nominated NBH governor by Viktor Orbán
Mihály Varga. After his nomination, a government change will come but Orbán will only chare the details about it in December. Photo: MTI

Forint eases on interbank forex market

The forint traded at 412.96 to the euro around 10:00 in the morning on Friday, edging down from 412.84 late Wednesday. The forint firmed to 390.60 from 391.38 against the dollar. It eased to 443.38 from 442.95 to the Swiss franc.

Read also:

  • Hungarian banking system declared stable and highly profitable in latest central bank report – read more HERE
  • Hungarian forint hits new 2-year low against the euro, attempts to recover

One comment

  1. Mihaly Varga.
    This decision, orchestrated, by the “present” – Prime Minister of Hungary – Victor Mihaly. Orban, personifies, the “malignant” toxic cultures, that are CREEDS, of this Orban led Fidesz Government of Hungary.
    The “knives” inside the Fidesz Party, have been “gunning” to have Varga replaced as the Minister of Finance for over the past 24 months.
    Wise heads, possible “learned” heads, had concluded, after Varga’s time up until then, he was the major catalyst, in sending the Hungarian Economy into a “Free Fall” and the longer he occupied the position as the Finance Minister of the Orban led Fidesz Government, the Economic & Financial position of Hungary, would WORSEN.
    They, looking back 24 months past, have been totally CORRECT, as Varga, being allowed, supported by Orban in his position, has continued on, sending Hungary, into a Financial & Economic CATASTROPHE.
    Varga, in addition to his HUMONGOUS failings, in the directional requirements being Policy decisions – his Management, of the portfolio of his Responsibilities, the Financial & Economic – of Hungary, that factually we SEE to-day, his FAILINGS, in-side the European Union, the past 5 months, under Hungary’s present time of Presidency, the “exposure” of Varga, in the position he holds, has “mystified” numbers of “others” – of higher intellect, of “learned” brains, of member countrys of the European Union, that have witnessed “first hand” – his lack of Financial & Economic competency.
    The “Speak Easy” environments of Brussels, that “off the record” in a social environment, people holding positions of prominence in countrys of the European Union, in Finance & Economics, there has been a broadness of conjecture – in agreement, at the LACK of Vargas – Ability.
    Mihaly Varga – when looking back over his time, in the Orban – Fidesz Government inclusive of his role, prior to becoming Finance Minister – what will his LEGACY be – how did he PERFORM in the “Care” – firstly – for individually Hungarians and secondly – for Hungary ????
    History – will be RUTHLESS on Mihaly Varga – for what he, to this point in time, has DELIVERED – the present Chaos and DEVASTATION – the Government Debt of Hungary, an Economy, in a “pressurized” downhill trend, that will WORSEN.
    Hungary’s – Prime Minister – Victor Mihaly. Orban, his announcement, of one of his “inner sanctum” members, another “Founding Father” of the Fidesz Political Party – Mihaly Varga, would be the next Governor – of the Hungarian National Bank – REPULSIVE.
    Orban – has played a game of “shuffling the cards” – avoiding, the escalating rumblings from within his Party, in an imploding party, which he leads – environment.
    Varga – won’t be a subject, whose name will succumb – to the growing mounting of pressure to have HIM re-moved or SACKED – as Finance Minister of the Orban – Fidesz Government of Hungary,
    Orban – has just “rid” of him re-moved him, to appease somewhat, the growing turbulency un-rest, in his Party, the Varga EMBARRASSENT and Failings, in his Ministerial Portfolio as Finance Minister of Hungary.
    It WILL not be a “Peace Meal ” deal, as the Varga legacy as Minister of Finance, and the coming time he will hold the position as the Governor of the Hungarian National Bank – both appointments, will CONCLUDE as PERILOUS.
    Mihaly Varga – sacked or “moved on” – in the way, the present Prime Minister – Victory Mihaly. Orban plays his cards, and plays PEOPLE – instead of DOING or making the Correct & RIGHT decision, for firstly individually, the citizens of Hungary, and secondly for Hungary – in just SACKING Varga ???
    Mihaly Varga, his “inner sanctum” place in the Orban led Fidesz Government of Hungary, his “brotherly” or comradeship – “relationship, with Victor Mihaly. Orban – protectionism PERSONIFIED – of Vargas name, is there not a “Conflict of INTEREST” – in the “moving on” of Varga, to be the next Governor of the Hungarian Central Bank ???
    Independence – of SEPARATION – being not Interfered with, making decisions from “with-in house” – in the RESPONSIBILITIES of the PURPOSE – there being & role – reason(s) of the Hungarian Central Bank of Hungary – and “Void” of – non existent of – NO Government interference ???
    The embodiment – we WILL witness AGAIN – the Toxic Cultures – delivered to Hungary, this WORSENING cataclysmic “nadir” – that DISTRESSINGLY is Hungary.

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