As the final event of its Technical Cooperation Programme 2024, the Magyar Nemzeti Bank (MNB) held a seminar with a new topic titled “Monetary Policy Instruments and Crisis Management” from November 25 to 28, 2024 in Budapest. The initiative – launched in 2023 – aims to foster the MNB’s collaboration with its partners, facilitate the exchange of knowledge and financial dialogue among central banks. The Technical Cooperation Programme is built on the belief that knowledge-transfer and personal connections have a vital role in effective economic policymaking, financial stability and growth, therefore benefit all parties involved.
Recent crises periods are reshaping macro and market environment on a broad scale. Policymakers and central bankers need to understand to possible implications not only to their mandates, but on monetary policy implementation and prudential frameworks as well. During the 4-day course experts from 22 countries across the Balkans, Caucasus, North Africa, the Middle East, Central Asia, and Southeast Asia gathered to overview the MNB’s various crisis management practices covering a wide range of central bank functions and responsibilities. The lecturers also presented the policy responses of MNB to the coronavirus pandemic. Hungary’s financial system was prepared for the pandemic, thanks to the steps taken by the MNB in a timely, targeted, flexible and appropriate manner. The participants had the chance to learn about the role and functioning of monetary policy instruments through firsthand experiences and familiarize with the macro- and micro-prudential perspectives of managing liquidity crises in the banking sector. The seminar also presented the FX debt crisis and subsequent conversion of FX loans in Hungary, additionally participants could gain insight into case studies covering recent crisis times in different markets and conducting monetary policy in the times of crisis through group assignments.
During this year more than 110 central bank experts from 30 partner countries attended the four seminars. Building on this success, the MNB’s Technical Cooperation Programme will continue in 2025 under the theme “Stability in Transitions”, which reflects the delicate balance central banks must strike between ensuring stability and adapting to change.
