New Hungarian Foreign Exchange Rules

by Dr Eva Hegedus (1)

Act XCV of 1995 ("Act") on Foreign Exchange which entered into effect January 1, 1996 along with Decree 161/1995 (XII. 26.) of the Government and Decree ("Decree") 15/1995 (PK. 18.) of the Chairman of the National Bank of Hungary ("NBH") invalidated a great number of foreign exchange regulations and brought about a certain unity into the previously confusing maze of foreign exchange rules. Inspired by the desire to comply with OECD standards in the area of foreign exchange law, thereby acquiring OECD membership status, the Act liberalised most current payment transactions but left certain restrictions in the area of capital transactions. Despite such restrictions Hungary was successful in obtaining its long desired OECD membership and thereby came a step closer to also becoming a member of the European Community.