Hungarian central bank deputy governor resigns, forint slips on announcement
Barnabás Virág has resigned from his position as Deputy Governor of the Hungarian National Bank (MNB), the institution announced on Thursday morning. Virág, who was responsible for analysis, payment systems and central bank programmes, will remain at the bank as an adviser to the governor.
His resignation comes ahead of the end of his mandate, which was set to expire in June 2026, Portfolio reports. For months, analysts had expected a change, especially after former central bank governor György Matolcsy stepped down earlier this year and was replaced by Finance Minister Mihály Varga. At the time of Varga’s appointment, it became clear that he would not extend the mandates of the three deputy governors inherited from the previous leadership.
Banai Péter Benő nominated as successor
The central bank has nominated Péter Benő Banai, a seasoned fiscal expert, to fill the deputy governor role, according to Telex. Banai worked in the Finance Ministry and the Ministry for National Economy between 1998 and 2025, most recently serving as state secretary responsible for public finances. Since May, he has been a chief adviser to the MNB president.
According to the bank, Banai’s decades of experience in public finance have contributed to Hungary’s economic stability, making him a suitable candidate for the deputy governor position. He will be heard by Parliament’s Economic Committee on 25 November.
Banai had long been viewed as the frontrunner for the role: during Varga’s own parliamentary hearing earlier this year, he already pointed to Banai as a key figure in his future leadership team.
End of an era: Virág was once the face of monetary policy
Virág joined the central bank as an analyst in 2003, following an early career at the Finance Ministry and at the predecessor of Corvinus University. He later served as director responsible for economic analysis and, from 2015, as executive director overseeing monetary policy and research.
He became deputy governor in 2020 and, for years, was the main public voice of the MNB’s monetary strategy. In spring 2025, however, the new leadership rearranged responsibilities, shifting the monetary policy portfolio to deputy governor Zoltán Kurali, while Virág moved to the analysis and payment systems brief.
While the central bank says it will continue to rely on his expertise as a presidential adviser, recent leadership changes suggest further reshuffling within the bank cannot be ruled out.
Forint dips on announcement, then partially recovers
The market reaction was immediate. As soon as the MNB’s statement was released at 8:39 AM, the forint weakened sharply, jumping to 385.6 per euro, Portfolio reports. Investors had rewarded Hungary’s recently strict monetary policy with a strong forint in recent weeks, and Virág, long associated with the bank’s hawkish stanc, was seen as a stabilising figure.
By 9:30 AM, the forint began to correct, strengthening to 383.6 per euro and 332.4 per dollar.
Even with Thursday’s volatility, the currency remains near its strongest levels in more than a year, supported by high interest rates and strong demand from carry trade investors.