Dániel Palotai, chief economist ... - Magyar Nemzeti Bank · Magyar Nemzeti Bank 6 •2016 Sep Renewal of PBOC-MNB swap line Central bank cooperation •Since Oct, 2016 RMB in the

MNB on the New Silk Road

BRI 2017 conference

Dániel Palotai, chief economist, executive director

1

April 5, 2017

Hungary on the New Silk Road

Magyar Nemzeti Bank 2 Source:HSBC, CEIC

Finances of the New Silk Road

Magyar Nemzeti Bank 3

MNB on the New Silk Road

•FX reserves in RMB •PBOC-MNB RMBHUF swapline •Clearing MoU •CBRC-MNB cooperation •Research

Achievement of the Renminbi Program

Magyar Nemzeti Bank 4

Budapest Renminbi Initiative

•RMB deposits, loans, RMBHUF FX products available •Bank of China as RMB clearing bank •RMB accounts available •BSE-BOC-MNB conference on RQFII quota

Developments

Magyar Nemzeti Bank 5

What happened since BRI 2016?

Magyar Nemzeti Bank 6

•2016 Sep Renewal of PBOC-MNB swap line Central bank cooperation

•Since Oct, 2016 RMB in the SDR-basket RMB as a reserve

currency

•Dec, 2016 direct RMBHUF trading in CFETS

•Jan, 2017 CFETS RMB index includes HUF RMBHUF markets

•Oct, 2016 BSE-BOC-MNB conference on RQFII quota

•Apr, 2017 RQFII Q&A RMB investments

•MNB publications

•FER Special Issue on China Research

Solid basis to build on

Magyar Nemzeti Bank 7

Inter- governmental cooperation OBOR, 16+1

Central bank

cooperation

FDI

Chinese-Hungarian

trade relations

Bank of China

as RMB clearing bank

RMB banking

services in Hungary

RQFII

Potential for 2017

Magyar Nemzeti Bank 8

RMB useage in trade settlement

Panda bond?

RMB clearing and settlement

Developing RMBHUF market

RMB investments (RQFII)

Research and academic cooperation

RMB instruments at BSE?

Thank you

for your attention

Magyar Nemzeti Bank 9