Orbán: Perilous times ahead for economy, reserves needed
Perilous times are ahead for the global economy, which cannot simply resume where it left off before the pandemic, Prime Minister Viktor Orbán said on Tuesday.
Reserves are therefore a basic requirement, he told a press conference held together with György Matolcsy, the governor of the National Bank of Hungary (NBH), in Budapest.
After viewing gold reserves held by the central bank, Orbán said money’s value was underpinned by gold, the central bank and the government. He thanked Matolcsy for ensuring that the central bank guaranteed the country’s “reserves and security”.
The prime minister referred to changes in the gold markets in recent years, noting that the international practice of central banks’ purchasing and depositing gold had changed, too. An opinion seems to have emerged that even though liquidity on the markets is adequate and loans abundant, “there may come times when it is unsafe to rely on loans alone”. Orbán said the government, while observing the independence of the central bank, had also suggested “there should be more gold reserves deposited at home”.
Matolcsy noted that
the central bank decided to increase Hungary’s gold reserves tenfold in 2018, following Orbán’s advice.
Last year, another increase of 63 tonnes took place, with gold reserves now amounting to 94.5 tonnes. He said the moment when Hungary had its highest ever gold reserves was “quite extraordinary”.
In a global list of countries with the largest gold reserves, Hungary has jumped from 56th to 36th place, while it now has the third largest gold reserves in the region after Poland and Romania, he said. In per-capita terms, however, Hungary is first in the region with 0.31 ounces of gold for each resident, Matolcsy said.
“Gold is a matter of national and economic strategy, a line of defence; those that have gold owe nothing to anyone,” he said.
Read alsoHungary crisis management yields mixed results, says central bank governor
Source: MTI
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4 Comments
Perilous times for Hungary do indeed lie ahead if the so-called ‘sausage coalition’ is elected into government at next year’s general elections.
However, not even FIVE HUNDRED TONNES of gold will suffice to satisfy the insane plans of those idiots!
Socialism always ruined countries. Socialist EU countries cannot guarantee the safety of its citizens.
The “fragileness” or “thinness” – plasticized picture and position – of the Global economy – the “smoke and mirrors” or paper created creative accounting – vulnerability of economies – operating and functioning on somewhat day to day policies and procedures – these are just few examples – that are – FACT – in what I believe the World has been WOKEN.
The world has not – ACCEPTED – nor Factually – Acknowledged – that life globally for ALL – has been changed – by the onslaught or arrival – of this on-going novel coronavirus.
Economy over Humanity – still reigns supreme in Governments, which throughout this – Tragedy – opinion shared by Angela Merkel – the German Chancellor correctly when she said – “this is the worst human tragedy of this century”.
The “balance” – economy/humanity – remains – Disproportioned – favoring Economics greatly heavily – over Humanity.
The “paper mache” – or “see through paper” – Factuality – of the Global economy pre February 2020 – as we proceed – through the Layers of recovery – 3-5 years of Recovery – Globally – the major challenge of the World, the plasticized world we lived pre February 2020 – will be EXPOSED.
Needs money for election bribes.