Financial cooperation between China and Hungary is becoming increasingly close

The Hungarian Central Bank is one of the first central banks in Europe to sign a bilateral currency swap agreement with the People's Bank of China. In recent years, Hungary China financial relations have become increasingly close, and Bank of China has been operating in Hungary for many years. The China Development Bank has established a representative office in Budapest, and the China Construction Bank Hungary branch has recently officially opened. The cooperation between Hungary and China is promoting Budapest to become a financial center in the Central and Eastern European region

At the "2023 Budapest RMB Initiative" forum held on May 4th, the Deputy Governor of the Hungarian Central Bank, Paotaui Mikhai, made the above statement. This forum is jointly hosted by the Central Bank of Hungary and Bank of China (Central and Eastern Europe) Limited, focusing mainly on issues such as financial connectivity and green transformation, as well as the role of the renminbi in the Central and Eastern Europe region.

In March 2015, the Hungarian Central Bank proposed the Budapest RMB Initiative, aiming to leverage the growing international influence of the RMB, enhance Budapest's regional role in economic cooperation between China and Central and Eastern Europe, and strengthen Hungary's economic and trade cooperation with China.

Currently, more and more countries are choosing the Chinese yuan as the currency for international trade settlement. China has signed bilateral currency swap agreements with over 40 countries and regions. The People's Bank of China has authorized 31 RMB clearing banks in 29 countries and regions. In 2022, the scale of cross-border RMB settlement in China exceeded 42 trillion yuan, an increase of approximately 3.5 times compared to 2017. In March of this year, the use of the Chinese yuan in cross-border transactions surpassed the US dollar for the first time.

Yang Chao, Charg é d'affaires a.i. of the Chinese Embassy in Hungary, pointed out in his speech that the global financial landscape is undergoing significant adjustments and the international monetary system is accelerating towards multipolarity. The internationalization of the RMB will provide reliable new choices for countries around the world, inject more stability into the turbulent international financial market, and create more new opportunities for global economic recovery. This year marks the 20th anniversary of the establishment of a comprehensive strategic partnership between China and the European Union. China is willing to work with the European side to activate mutually beneficial cooperation in various fields and inject new impetus into the development of China Europe relations.

Hungary and China are both leaders in the era of globalization, and they have conducted mutually beneficial cooperation on the basis of trust and mutual respect, creating a long-term good investment environment. "Xu Chen, Chairman of Bank of China (Europe) Co., Ltd., pointed out that in the post pandemic era, the world has entered a period of turmoil and transformation, and it is crucial to build a more balanced and diverse global financial system. Economic decoupling is not beneficial for either party. With the continuous strengthening of China Europe economic and trade relations, both companies benefit from stability and long-term prosperity.

Li Kexin, President of Bank of China (Central and Eastern Europe) Co., Ltd., said that Central and Eastern Europe plays an important role in the world financial landscape, linking the European market with the "the Belt and Road" initiative. By serving local customers and "going global" Chinese enterprises, Chinese banks have achieved a win-win situation in cooperation with international and local banks in the Central and Eastern European markets. Looking ahead, China and Central and Eastern Europe have great opportunities for further cooperation and development in green project investment, green finance and digital economy.

This forum also invited financial professionals and experts from China, Europe, and the United States to discuss topics such as "Budapest as the financial center of Central and Eastern Europe - RMB financing and Chinese banks in Hungary" and "opportunities for sustainable finance, green financing, and central banks".