In remarks at the informal ECOFIN meeting in Nicosia, National Bank of Hungary Governor Mihály Varga argued that heightened European and global uncertainty makes predictability, stability and cooperation among independent central banks more important. He said the National Bank of Hungary had organised its operations around resilience and stronger international ties, and reiterated that it would work constructively with the government to meet the Maastricht criteria so Hungary could join the euro area as a competitive, well-prepared economy. Varga described the short- to medium-term European growth outlook as highly uncertain and said the prolonged conflict in the Middle East posed serious downside risks. He pointed to what he described as record reserve holdings of about EUR 60 billion in foreign exchange reserves and 110 tonnes of gold, and said inflation in Hungary had returned to the central bank's tolerance band while the EUR/HUF exchange rate had appreciated to below 360 from an earlier level of 410.