New National Bank governor would “further weaken” the forint, says Gyurcsány’s DK

The opposition Democratic Coalition (DK) and Socialist parties have criticised the prime minister’s decision to nominate Mihaly Varga, the incumbent finance minister, to serve as the next central bank governor, saying he would “further weaken” the forint.

DK spokesman Balázs Barkóczi told an online press conference that by nominating Varga to head the National Bank of Hungary, Viktor Orbán 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”.

Forint in trouble after Varga’s nomination? Photo: FB/MNB

Socialist Party lawmaker Zoltán 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 Mihály 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”.

Read also:

• Forint hits new low against the euro as exchange rate surges past 413
• PM Orbán nominated new Hungarian National Bank governor, forint strengthening, government change comes