Fidesz - JER agreement?

Tuesday, March 5, 2013

The Hungarian government might create a ruble-based reserve currency –

Fidesz vice-president Antal Rogán visited Moscow on February 28, 2013 and held talks with representatives of the United Russia party.

The two sides agreed that Hungarian Prime Minister Viktor Orban's visit to Moscow in late January gave a new impetus to Hungarian-Russian relations.

The Fidesz delegates said Russia is seen as a strategic partner with which they want to work on the widest possible range of fields. The Hungarian Government is also considering the creation of a ruble-based reserve currency due to the instability of the dollar.

Rogán invited representatives of the United Russia party to the Fidesz upcoming congress, and expressed his hope that the two parties sign a cooperation agreement soon.

( – Orosz Vilag –


Anonymous said...

Well that would be really dumb. The ruble is a weak and unreliable currency and last went bankrupt in 1998 not to mention it's prone to wild swings on the market.

The USD is not unstable at all. 63% of the global market uses it as THE currency reserve. The danger for Hungary with the USD is that Fidesz took on a USD FX bond float and that market is ripe for a huge sell off and Fidesz will take a bath. That's why they were looking towards Russia.

Jobbik should be slamming Fidesz for both moves not to mention that the HUF will stay around 300 HUF or greater versus the Euro until they're comfortable with Matolcsy heading the MNB and that's not going to be anytime soon. That also means a weak HUF limits how much they can help Hungarian "victims" of those nasty FX Loans they took out.

So there's plenty of ammo to slam Fidesz all over the place on their economic policies and strategy.

Ricsi said...

Aloof@ You just cant stay away can you,even back in USofIsrahell you keep commenting crap like you are some king of expert.The Rouble weak?? Bankrupt in 1998,who caused it?? Who solved it??? The Dollar stable??? We will soon see how reliable your 'petro-dollar'really is. :)

Anonymous said...

International MAFIA Ffund to add AUD and CAD as reserve currencies which one’s next?

IMF confirmed that the AUD and CAD will appear as reserve currency within three months. This emphasizes the spiraling demand for additional reserve currencies and the New Zealand dollar has the best chance to join the list, according to experts.

"The IMF is expanding the list of currencies separately identified in the Composition of Foreign Exchange Reserves reporting (COFER) template," said an IMF spokeswoman as cited by The Wall Street Journal. "The implementation of the revised COFER Report Form, with separate identification of the Australian dollar and Canadian dollar, is scheduled for the first half of 2013."

The IMF holds report figures of the global reserve holdings in a database known as the COFER mainly in just five currencies, deemed by many investors to be among the world’s safest: US dollars, euros, British pounds, Japanese yen and Swiss francs.

Recent economic problems associated with the euro and the dollar set a continuing trend for the diversification of the reserve currencies as a way out from the volatility,..

“It is definitely a trend and this trend will continue. There is a global demand for more reserve currencies. The world economy wants to diversify the set of reserve currencies as a way from the volatility and the problems associated with the current reserve currencies, because both US and Europe are plagued by economic problems. This is natural and clear that the global economy should use more foundations, more columns on which to stand and build a stronger foundation of a more complex global economy,” said Lissovolik...

Australia and Canada both have resource based economies that have been benefiting from the growing demand for raw materials in Asia and other regions, which have given both countries the opportunity to emerge from the global financial crisis in much better shape than either the US or Europe, according to The Wall Street Journal.

Russia is with Australia and Canada in the same group of the resource focused economies. But Russian ruble is not as ready as it seems to become a reserve currency, as it is subject to external influence, Bodrova told RT. For the situation to be clearer, the Russian Central Bank needs to decide whether it should let the ruble float freely or continue to regulate it. If the Central Bank continues to regulate it, ruble’s chances to become a reserve currency will increase.

"So far I see no basis to include the Russian ruble to the list of reserve currencies in the next two years", Bodrova said.

There are some differences that may pertain to issues concerning monetary policy, exchange rate flexibility and the degree of the dependency of the economy on oil and oil prices that limit Russia’s progress, according to Lissovolik.

If Russia strengthens the ruble’s role in the Commonwealth of Independent States (CIS) region and increases the share of trade and investment in rubles globally, then the Russian currency will become a global reserve currency, he says.

Concerning the Chinese yuan, it is unlikely to become a reserve currency in the near future, as China has been a closed country for a long time, and only in the last year and a half the country began to open up, to let in foreign investors and show willingness to reform its system, Bodrova told RT.

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