Prime Minister Viktor Orbán has said perilous times are ahead for the global economy, which cannot simply resume where it left off before the pandemic.
The prime minister joined György Matolcsy, the governor of the National Bank of Hungary (NBH), in Budapest, where he said reserves are therefore a basic requirement. After viewing gold reserves held by the central bank, PM 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”.
PM Orbán also 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”. PM 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 the prime minister’s advice.