The Hungarian National Bank, or the country's central bank, announced Tuesday it decided to build a small bond portfolio denominated in Chinese currency RMB in several steps.
The decision, made after considering the increasing international role of the Chinese RMB is "for economic policy and foreign currency asset diversification purposes," the bank said in a statement posted on its official website.
A small RMB bond portfolio relative to the size of the Bank's reserve assets may be built which would not materially influence foreign exchange reserve adequacy, it added.
The Hungarian National Bank launched its five-pillar RMB Program on Feb. 19 in view of the dynamic process of the RMB becoming an international reserve currency. One pillar is to develop a foreign exchange reserve portfolio.
The bank said that it would inform the general public about the realisation of RMB investments.
