According to the governor of the Hungarian National Bank (MNB), the MNB and the European Central Bank (ECB) have started informal talks concerning Hungary's membership in the ERM II mechanism.
The Hungarian government and the MNB already approved the joining of the ERM II after the EU accession next May.
The parties agreed in principle that the central exchange rate in ERM II should be an equilibrium rate. Mr. Jarai said that if the equilibrium rate was set up today, it would not be far from the current market rate (EUR 1 = HUF 255.44), however, much can change by next year.
The Hungarian government aims to adopt the euro in 2008. Disciplined fiscal policy is needed, the governor added.
Source: Bluebull
