DK spokesman Balazs Barkoczi told an online press conference that by nominating Varga to head the National Bank of Hungary, Viktor Orban had "essentially sentenced the forint to death".

He said the forint is currently trading at 412 against the euro, but the 2025 draft budget assumes a EUR/HUF exchange rate of 397.5. Barkoczi insisted that the draft budget and Varga's nomination were the reason "why the forint is falling again".

Socialist Party lawmaker Zoltan Vajda said the prime minister should have nominated "an independent leader recognised in the field" to head the central bank instead of a "party politician".

"It had been suspected for months that Mihaly Varga will be the next NBH governor, which is another concerning development when it comes to the future of Hungary's economy," Vajda said in a statement.

He said the prime minister's decision suggested "that the government doesn't intend to make any changes to the policies that have led to the forint's depreciation and the weakening of the financial security of Hungarian families".

Varga: I will serve the stability and prosperity of Hungary through my future work

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.

Prime Minister Viktor Orban said in a weekly interview with public radio on Friday that he is proposing for Varga to take over as the head of the NBH.

Orban proposes Varga for next central bank gov

Prime Minister Viktor Orban is proposing for Finance Minister Mihaly Varga to take over as the head of the National Bank of Hungary (NBH), Orban said in a weekly interview with public radio on Friday.

Varga has accepted the nomination, Orban added.

The PM said that he had submitted the nomination proposal to parliament.

Mihaly Varga is Hungary's most experienced economist and politician dealing with economic policy, Orban said.

From January 1, we will undoubtedly be working under a different economic management system, Orban said and added that he will be happy to discuss the details of this in due course, in December.
 

Source: 
MTI - The Hungarian News Agency, founded in 1881.

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