Former Minister of Finance Mihály Varga has formally assumed the role of Governor of the Hungarian National Bank (MNB) following his swearing-in ceremony at the Sándor Palace on Monday.

Based on a decree issued by President Tamás Sulyok and following the nomination by Prime Minister Viktor Orbán, Varga will lead the central bank for a six-year term beginning on Tuesday. Prior to signing the official documents of appointment and his oath of office, Varga pledged his allegiance to Hungary’s Fundamental Law and vowed to exercise his duties for the benefit of the Hungarian nation.

The ceremony was attended by several of Hungary’s top officials, including President Tamás Sulyok, Prime Minister Viktor Orbán, Speaker of the National Assembly László Kövér, Minister of the Prime Minister’s Office Gergely Gulyás, and Fidesz parliamentary group leader Máté Kocsis.

Prime Minister Orbán publicly named Varga as his choice for central bank governor in late November, ending months of speculation regarding the successor to György Matolcsy, whose term concludes in March 2025. Varga’s nomination was promptly welcomed by Minister for National Economy Márton Nagy, a former deputy governor of the Hungarian National Bank, who has had a well-documented strained relationship with Matolcsy.

Varga, who served for an extended period as Finance Minister, is viewed as a stable and reliable choice by the Prime Minister. His appointment suggests a preference for continuity and close alignment with the government’s fiscal strategy, as Varga is not regarded as someone who would seek excessive independence from the executive’s economic policy direction.

With his extensive experience in economic governance and longstanding ties to the current administration, Varga’s tenure is expected to reinforce the government’s influence over monetary policy at a time of ongoing economic challenges.

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