Hungary's central bank defends pursuit of a strong currency

Published: 28 November 2004 y., Sunday
The president of Hungary's central bank, Zsigmond Jarai, is facing off pressure from the Socialist-Liberal government and advice from economists in a fight to keep the local currency, the forint, strong. It all reached a low point last week as parliament passed a law that will give the government a say in monetary policy, which Jarai views as an onslaught on the central bank's independence. The row has political undertones -- Jarai served as finance minister in the former rightwing goverment of Viktor Orban -- and risks impacting on Hungary's plans to adopt the euro in 2010. "A strong country needs a strong currency, because a strong currency represents a strong economy," was a refrain of Orban, which Jarai has echoed, albeit with more subtlety. He warned last week: "If the president signs (the bill) then we are definitely going to turn to the constitutional court because in our view it violates European treaties on certain points."
Šaltinis: story.news.yahoo.com
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