As a result of Hungary's successful geopolitics and economic and monetary policy after 2010, it may be able to build a financial center, a "gateway" operating between West and East in the new, divided global financial system, György Matolcsy, president of the Magyar Nemzeti Bank (MNB), wrote to the Hungarian nation. on the hu page.
He emphasized: this would also mean the creation of a unified economic space in the Carpathian Basin, because there is no financial strength without an economic base.
The world economy, which is splitting into two due to geopolitical changes, is creating a dual financial system, which, in addition to competition and opposition, also requires trade and cooperation, so intermediaries and "gateways" are being built between them, he noted.
He recalled that during the American-Soviet Cold War, Hong Kong and Singapore in Asia and Helsinki and Vienna in Europe acted as gateways. Switzerland functions as a particularly efficient financial gateway because it is open at all times and to almost everyone, he said.
According to the president of the central bank, the country that is able to act as a mediator and a gateway between the two opposing worlds can gain a lot, "because peaceful trade usually raises more than war confrontation".
György Matolcsy said that after 2021, several countries and cities have a chance to act as new gateways based on their geographical position, geopolitical strategy, economic strength, the development of the financial system, and their cultural capital. New gateways may emerge in Asia (India, South Korea, Japan), the Middle East (United Arab Emirates, Saudi Arabia, Israel) and Europe (Hungary, Serbia, possibly countries leaving the Eurozone), he listed.
The Governor of the Central Bank pointed out: "the essence of Hungary's geopolitical success so far is that, as part of the West, as a member of Western alliances/cooperation organizations, we have preserved our room for cooperation in the East".
Internal political predictability, regional alliances (V4, Serbia), "parallel" cooperation with major powers, access to EU markets, dynamic GDP growth, the ability to attract FDI, the national currency, significant gold reserves, and "mixed", western and eastern foreign currency reserve sources of the central bank can make Hungary suitable for the construction of an intermediary center between the two worlds, he concluded.
According to György Matolcsy, there are also reserves, the more intensive use of which could provide the country with even better capabilities to perform gateway-intermediary tasks. These include, for example, "GDP growth that rapidly approaches, reaches, and then exceeds the EU average", the construction of a continuously positive current account balance, the constantly expanding gold reserve, a smart defense force and recognized universities.
The governor of the central bank concluded his remarks by saying that the construction of the Hungarian financial gateway requires political independence, business freedom, and a wide range of economic and financial decision-making. It is therefore a prerequisite that both worlds recognize and even support its operation, he added.
MTI
Cover photo: György Matolcsy, President of the Hungarian National Bank (MTI Photo: Lajos Soós)
