Cross-border connectivity of finances and the green transition were the main subjects of the MNB’s Renminbi Conference

4 May 2023

The Magyar Nemzeti Bank has held its Budapest Renminbi Initiative Conference under the title ‘Financial interconnectivity and green transition’. The speakers discussed the issue of renminbi financing, the role of Budapest as a financial hub in the Central and Eastern European region and central banks’ green, sustainable financial activities.

This year, the Magyar Nemzeti Bank (MNB) held its seventh Budapest Renminbi Initiative Conference, a unique event in the development of contacts in the fields of finance and economic diplomacy between China and Hungary for several years. The Bank launched its event series in March 2015 with the purpose of further strengthening its partnership with the People’s Bank of China (PBoC) and supporting dialogue on the importance and impact of internationalising China’s currency, the renminbi (RMB).

At the opening ceremony, Mihály Patai, Deputy Governor of the MNB, Yang Chao, First Officer and Charge d’Affaires ad interim of the Chinese Embassy in Budapest, Xu Chen, Chairman of Bank of China (Europe) and Zhang Jun, Dean of Fudan University shared their thoughts. In his opening speech, Mihály Patai emphasised the MNB’s commitment to the internationalisation of the RMB, which is facilitated by both its close partnership with the People’s Bank of China and its good relations with the growing Chinese financial institutions present in Hungary. The speakers agreed that financial cooperation has been a catalyst of relations between China and Central and Eastern Europe, among others, under China’s One Belt, One Road initiative.

The first panel discussion of the event was held in cooperation with Bank of China’s Hungarian subsidiary. Moderated by László Vastag, Executive Director of the MNB, representatives of Bank of China, China Construction Bank and China Development Bank in Hungary and of ICBC, taking active interest in the Hungarian financial market, discussed the opportunities of renminbi financing and the important role played by Budapest in the Central and Eastern European region. Li Kexin, CEO of Bank of China’s Hungarian subsidiary, was the keynote speaker at the panel discussion. Mr Li spoke about the progress made by Budapest in the offshore RMB market, Bank of China’s duties in the region, the favourable business environment in Hungary and the impact of infrastructure investments implemented in the region in the context of the pursuit of RMB internationalisation.

Invited speakers of the afternoon panel Zhang Bei, Deputy Director-General of the Research Bureau of the People’s Bank of China, Alain Naef, Senior Research Economist at the Banque de France, and Wing Thye Woo, Professor of Economics at the University of California, discussed the tasks and challenges related to sustainable green transition, one of today’s most important trends, facing central banks. The keynote speaker of the discussion was Ádám Banai, Executive Director of the MNB, who spoke about the MNB’s green mandate and presented the Bank’s green monetary policy toolkit and strategy.

The aim of the Bank’s Renminbi Programme is to exploit the growing international role of China’s currency, to enhance the regional role of Budapest in relations between China and Central and Eastern Europe, and to strengthen external economic relations between China and Hungary. Other objectives of the MNB’s programme are to contribute to the diversification of investment and financing sources in Hungary and to stimulate the growth of cross-border economic activity.

In line with the Bank’s commitment to sustainable transition, the MNB’s Renminbi Conference was a carbon neutral event.

The recording of the Conference can be viewed by clicking on the link below:
Budapest Renminbi Initiative Conference 2023 - YouTube