Hungarian National Bank
|This article is outdated. (December 2011)|
|Established||June 24, 1924|
|Central bank of||Hungary|
HUF (ISO 4217)
|Preceded by||Royal Hungarian State Bank|
|Website||Official site of Magyar Nemzeti Bank|
The Hungarian National Bank (Hungarian: Magyar Nemzeti Bank) is the central bank of Hungary. The principal aim of the bank is to retain price stability. It is also responsible for issuing the national currency, the forint, controlling the cash circulation, setting the Central Bank base rate, publishing official exchange rates and managing the national reserves of foreign currency and gold to influence exchange rates. It controls the country’s monetary policy.
The MNB maintains a medium-term inflation target of around 3%. This is somewhat higher than the generally accepted level of inflation for price stability in Europe, and it is used in order to allow for Hungary's "price catch-up" to the rest of Europe.
The Governor of the Hungarian National Bank is appointed by the President of Hungary at the proposal of the Prime Minister for a term of 6 years. The most important decision-making body of the Hungarian National Bank is the Monetary Council. The building of the Hungarian National Bank is located in Liberty Square, in the Inner City of Budapest. It can be found next to the building of the US Embassy.
According to Hungary's Central Bank Act, which founded the Hungarian National Bank, "The primary objective of the MNB shall be to achieve and maintain price stability. Without prejudice to its primary objective, the MNB shall support the economic policy of the Government using the monetary policy instruments at its disposal."
Hungary formerly was to join the Euro in 2010, thus divesting the MNB of most of its powers. However, central bank leaders have criticized this plan, saying that the fiscal austerity requirements would slow Hungary's growth.
In December 2011 two of the three major credit rating agencies downgraded Hungarian debt to a non-investment speculative grade, commonly called "junk status". In part this is because of changes to the national constitution creating doubts about the independence of the central bank.
In the Austira-Hungary era the Austro-Hungarian Bank acted as the central bank of the Monarchy. After World War 1 the Austro-Hungarian Bank has been dissolved and a new bank, the Royal Hungarian State Bank was established.
The first independent Hungarian central bank, the National Bank of Hungary, commenced operations on June 24, 1924, in the form of a company limited by shares.
Demonetised and damaged currency
Demonetised or damaged currency issued by the Hungarian National Bank can be exchanged in their head office and two regional offices.
MNB Currency Emissions Division (Head office)
1850 Budapest, V. Hold u. 7.
- Press Release: Medium-term inflation target, 22 August 2005. Accessed 18 July 2006
- "Hungary Central Banker Urges Delay for Euro" 18 July 2006. Associated Press. Accessed 22 July 2006
- "Hungary borrowing costs rise on junk downgrade". BBC. 22 December 2011. Retrieved 27 December 2011.
- "Hungary: playing chicken". The Guardian. 25 December 2011. Retrieved 27 December 2011.
- (Hungarian) (English) Official site of Magyar Nemzeti Bank