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MNB to supplement tools to diminish forint volatility

  Central bank (MNB) governor András Simor said the central bank considers the excessive volatility of the forint harmful and would add new elements to its existing tools to diminish this volatility.

The MNB has no concrete exchange rate target, but exchange rate trends continue to remain important for the bank, thus it considers excessive volatility - like that seen in the weakening of the forint in the past weeks - harmful, Simor told MTI. The central bank has the appropriate tools at its disposal to lessen excessive volatility and ease the resulting tension in the financial system, Simor said. „In addition to these, the MNB is expected to supplement its existing tools with new elements in the near future,” he added. The forint’s volatility can cause tension in the domestic financial system, which is already more sensitive than usual, Simor said. (MTI-Eco)